The Roth IRA (Individual Retirement Account), named after Senator William V. Roth, Jr., came into effect on January 1, 1998. A result of the Taxpayer Relief Act of 1997, the Roth IRA provides a benefit which is otherwise not available in any other form of retirement savings. If you meet the criteria and subscribe to the Roth IRA, all your savings will be tax-free when you or your beneficiary draws on them.

Another advantage is that you can also avoid the early distribution penalties, which you would otherwise have to pay with any other type of withdrawals. The picture, however, is not all that rosy. This is because you don