Retire without taxes

Only one savings plan gives you the chance to free yourself from taxes in retirement. Are you making the most of it?

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11. When do I have to withdraw from a Roth?
You don't. With regular IRAs, you must begin withdrawing at least a minimum amount of money no later than the April after you turn 701/2, whether you want to or not. Fail to do so, and you'll be hit with a stiff penalty.

Not with your Roth IRA. You never have to take a penny out. You can let your savings rack up tax-free returns as long as you want. That can be a huge advantage if you have enough in other funds to live on and want to keep your Roth stash as an emergency reserve. If it turns out you don't have to tap your Roth, you can pass it along to your children, who can take the money right away or stretch withdrawals (and tax-free growth) over the rest of their lives. If your spouse inherits, she isn't required to make withdrawals at all.

NEXT: How easy is it to get money out of a Roth?
Last updated September 16 2008: 11:34 AM ET
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