A number of personal finance experts strongly recommend Roth individual retirement accounts (IRAs) because their tax benefits arrive just when you need them most—when you retire. Contributions to a traditional IRA are deductible in the tax year you make them, up to government-set limits. And although contributions to a Roth IRA aren’t tax-deductible, the withdrawals in retirement will be tax free (again, subject to limits).

But Roth IRAs aren’t for everybody. There are income and contribution limits to be aware of. There are limits on income to be aware of as well. For tax year 2015, your contributions to an IRA are limited to $5,500 per year, or $6,500 if you are 50 or older. These amounts are reduced even further if your “modified adjusted gross income,” as defined by the Internal Revenue Service, is above certain amounts. See the IRS table of Roth IRA contribution limits by income level and different filing categories for more information.

Many financial planners are quick to point out that reaching your Roth IRA contribution limits doesn’t mean you have to—or should—stop socking money away for retirement. That’s true even if you also have a 401(k) retirement account at your place of work. “Ultimately, you really want to have your 401(k), and you want to have some regular savings, and then you’d like to have a Roth,” Georgia Bruggeman, a certified financial planner with Meridian Financial Advisors, LLC, in Holliston, Massachusetts, told Ally Bank in an interview. “Having your retirement income spread between these different piles of money . . . gives you the maximum flexibility to manage your tax bill,” she said.

So if you don’t have a retirement plan at work, you can contribute the maximum into a traditional IRA, regardless of your income. If your income makes the Roth IRA contribution limits too confining, you still may be able to open a traditional IRA and save more for retirement that way. However, your total contributions to all IRAs can’t exceed the overall limits of $5,500 annually, or $6,500 if you’re over 50. Be sure to visit the IRS website to find current information for your situation.

Ally Bank offers both Traditional and Roth IRAs, along with other savings options, including CDs, money market and online savings accounts—all with rates consistently among the most competitive in the country based on rates as published by Bankrate.com. Plus, you’ll get the security that comes with knowing your money is insured by the Federal Deposit Insurance Corporation (FDIC) up to the maximum allowed by law.

Learn more at Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559).

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