When saving for retirement, more time in the market can be beneficial depending on your goals and risk tolerance. Generally, the longer your investing timeline, the greater the opportunity to save and the bigger risk you can afford to take.
But your investing timeline can be shortened due to required minimum distributions, or RMDs, which apply to pretax 401(k) plans and individual retirement accounts starting at age 73.
However, RMDs aren’t required for Roth IRAs during the original owner’s lifetime. Surviving spouses can also avoid RMDs if they roll the funds into their own Roth IRAs.
Therefore, a Roth IRA provides a
Roth IRAs provide more time for ‘tax-free investing,’ advisor says
