Most Early IRA Withdrawals Get Hit With a Fee -- But 3 Exceptions Could Save You

When it comes to saving and investing for retirement, there aren't many better routes than utilizing retirement accounts. The most popular option is a 401(k), but it's not the only viable option. IRAs are also great options to consider. There are several different types of IRAs, but the two most common options are the traditional IRA and the Roth IRA. The difference between these accounts comes down to when you get your tax break and pay taxes.With a traditional IRA, you get your tax break upfront. Depending on your income, filing status, and whether you're covered by a retirement plan at work or not, you can deduct all or most of your contributions from your taxable income. With a Roth IRA (which has income limits for contribution eligibility), you get your tax break on the back end. You contribute after-tax dollars, and in return, you're allowed to take tax-free withdrawals in retirement.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool