Investment options Roth IRAs are flexible because you can invest funds in several vehicles, including a Gold IRA comparison chart. You can choose stocks, bonds, mutual funds, and exchange-traded funds (ETFs). Savings accounts don't have the option of investing the money you deposit, but they do pay interest, which may increase over time. That makes them ideal for short and medium term investments or for money you can't afford to lose. You may not have noticed, but you may have an IRA savings account, an investment IRA account, or both.
However, unlike owners of traditional IRAs or 401 (k) plans, Roth IRA owners don't have to accept the required minimum distributions (RMDs); instead, they can leave their money in the Roth IRA for as long as they live and leave it in the hands of a designated beneficiary. An IRA savings account or a money market IRA savings account may be suitable if you are looking for more liquidity (easier access to your money). A Roth IRA is a type of IRA in which you pay taxes on the money that goes into your account, but future withdrawals are tax-exempt if certain requirements are met.