Money Talks News: Roth or regular retirement plan?

Money Talks News - When we think retirement, this is what we imagine. Relaxation, fun and all the time in the world.

But before you join the shuffleboard set,there is some shuffling that needs to be done. Namely, shuffling money to where it's going to earn the most for your retirement nest-egg. Two of the best places? IRAs and 401(k)S.

But with either an IRA or 401K, there's another decision to consider: Should they be regular, or should they be Roth?

Traditional accounts allow you to deduct the money you put in. But you have to pay taxes when you take it out after retirement.

A Roth is the mirror-image; no deductions going in, tax-free money coming out. Which is better? There's some complicated math involved in figuring it out, but there's no shortage of simple, free calculators online that will figure it out for you in seconds.

But the bottom line is for most people in most situations, the Roth will beat the traditional.

But that's not always true, especially if you're going to be in a much lower tax bracket when you retire.

Of course, that's something pretty difficult to know. So if you don't know which shot you should take, here's an idea; shuffle a little money into both, a regular and a Roth. That way you can be sure you're going to have a less taxing retirement.

For more information head over to the Money Talks Website and do a search for "Retirement."

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