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Most Americans want to save for retirement, but most don't know how to start. Putting money into a savings account is ideal for short-term goals and emergency funds. But there are better investment vehicles for long-term savings. One investment vehicle that I've grown to love almost as much as much as I love In-N-Out Burger (key word: “almost”) is the Roth IRA.

I know Get Rich Slowly has covered the Roth IRA a lot in the past, but new readers might not be that familiar with it. Besides, even though you might think you know everything there is to know about Roth IRAs, here are some facts that might be new to you.

1. The Roth IRA has been around the block

Most people don't know that the Roth IRA is getting close to getting its driving permit, having been around for almost 14 years. It originally started with the Tax Relief Act of 1997, named after late Senator William Roth of Delaware.

After the Roth IRA conversion event of 2010, there was a further influx of Roth IRA contributions. Much can be attributed to this based on when the Roth IRA conversion was made available in 1998, allowing savers to to convert from a traditional IRA to a Roth IRA. During that time, 1.4 million taxpayers converted $39.3 billion in traditional IRAs to Roth IRAs.

Related >> Read whether it's better to have a traditional IRA or Roth IRA.

2. Contributions to Roth IRA are not tax-deductible

Unlike other retirement vehicles, such as the employee-sponsored 401(k), contributions to a Roth IRA are not tax-deductible. Contributions to your Roth IRA are made with after-tax dollars. This does not offer an immediate tax benefit compared to one that is recognized at the time of distribution. When you take a qualified distribution from your Roth IRA, you will never pay taxes on that money.

This allows you to have access to your contributions at any time. That's an attractive feature for those that want to save for retirement but are worried about having to pay a penalty if they need access to the money.

While you don't get a tax deduction, you may qualify for the Roth IRA savers credit. The downside of the credit is that if your adjusted gross income exceeds $27,750 filing single for the 2017 saver's credit for a credit rate of 50 percent of your contribution, you don't qualify. For people married and filing jointly, the adjusted gross income limit is $37,000.

3. You must meet eligibility requirements to contribute to a Roth IRA

As the Roth IRA gains popularity among retirement savers, many people fail to understand that not everyone will be able to contribute to this type of account. In order to contribute to a Roth IRA, you must fall below the established income thresholds set forth by the IRS each year. The cut-off limits (otherwise known as phase-out limits) for 2017 are $118,000 to contribute up to the limit and $132,999 to contribute a reduced amount for single filers. The limit is $186,000 for married couples filing jointly to contribute up to the limit and $195,999 to contribute a reduced amount.

If your income falls beneath the threshold for your filing status for the year, you must also make contributions from taxable compensation. This means individuals cannot use rental property payments, royalties or other non-taxable compensation to make contributions to a Roth IRA.

4. You may be able to convert other retirement accounts to a Roth IRA

Since 2010, there are new conversion rules that apply to the transferring of funds from a traditional IRA or 401(k) to a Roth IRA. When you convert from a tax-deferred retirement account to a tax-free retirement account, you'll potentially see many benefits long term. It's important to remember that the IRS isn't going to forget about the taxation of this money. Whatever amount you transfer to the Roth IRA will be tacked on to your earned income (and taxed at your current rate) for the year of the conversion.

5. Benefits of Roth IRA savings can help meet other financial goals

Usually, experts recommend that retirement vehicles be used solely for retirement purposes. However, out of all the retirement accounts on the market, the Roth IRA can be used for other goals.

Since you have already paid taxes on your contributions, you are able to enjoy tax-free distributions of those contributions (but not the earnings) before you reach retirement age. As long as all distribution requirements have been met, you may access that money for other things. These include a down payment on a home or college tuition. Often times I will meet with young parents who are very ambitious about saving for the kids' college. However, they are barely saving anything for their own retirement. In these situations, I often suggest the Roth IRA as a viable substitute.

6. Roth IRA distributions don't contribute to taxable earnings

One of the most attractive features of the Roth IRA is that, when you start taking distributions, you don't have to worry about them contributing to your taxable income. This is because Roth IRA contributions grow in your account tax free since you're contributing after-tax dollars. With a traditional IRA, you make a contribution with pre-tax dollars. As a result, you end up with a deduction. A traditional IRA contribution lowers your taxable income.

This is not the case with a Roth IRA. You get no tax benefit immediately for making a contribution to your Roth retirement account. You pay taxes on your income, and then you make your contribution. However, because you have already paid taxes on the money you use, you won't be taxed on it again. Your money grows tax free. For those who think that they'll be in a higher tax bracket or that tax rates will go up by the time they retire, this can be an advantage. You pay taxes at your current, lower rate. And then when you take your distributions, you avoid paying taxes at your future higher rate.

7. There is a five-year rule for Roth IRA withdrawals

It is possible to withdraw money that you have contributed to your Roth IRA at any time, tax- and penalty-free, as long as you meet the distribution requirements. However, if you want to withdraw the earnings from your Roth IRA, it is important to realize that you must have the account for at least five years. The clock starts ticking from the first day of the tax year in which you designate your contribution. So, if you open your Roth IRA in September of 2016 and make your initial contribution, you can make withdrawals of your earnings starting January 1, 2021.

This also works if you open your Roth IRA before April 15 and designate the contribution for the previous year. For example, you can open a Roth IRA on April 10, 2017, and designate 2016 as the year for your contribution. The clock starts ticking on January 1, 2016, even though you opened your IRA in April.

The five-year rule also applies to conversions. You cannot withdraw the converted amount in your Roth IRA until five years have passed.

8. There are no required minimum distributions during the life of the Roth IRA owner

For some folks, required minimum distributions (RMDs) are a big problem with retirement accounts. This is a minimum amount that the IRS says you have to withdraw from your retirement account each year once you reach a certain age. With some accounts, like 401(k)s, this can be disheartening. Since RMD can add to taxable income, this can possibly put you in a higher tax bracket.

However, with a Roth IRA, there are no RMDs. The owner never has to withdraw money if he or she doesn't want to. It is important to note that this privilege disappears upon the death of a Roth IRA owner. Heirs to the Roth IRA must take RMDs (but the RMDs are still tax-free). Inheriting a Roth IRA is very similar to receiving the proceeds of a paid-out life insurance policy.

The bottom line for Roth IRAs

The Roth IRA is growing in popularity because it offers many benefits without several of the drawbacks associated with other retirement accounts. In addition, the Roth IRA allows for contributions for the remainder of your life. This is unlike the traditional IRA that restricts you from contributing after age 70-1/2.

A Roth IRA can be a great savings tool. Just make sure you understand the Roth IRA rules that come with it, and be careful to adhere to them.

Author: Jeff Rose Jeff Rose CFP blogs at GoodFinancialcents.com. Jeff is well known among bloggers for his various causes: The Debt Movement, The Roth IRA Movement and The Life Insurance Movement. His also wrote a book, Soldier of Finance.