The only downside to a Roth IRA is that contributions come from money that's been taxed; there's no deduction. But after that, everything is positive. A Roth offers tax-free income in the future, and it's super-flexible.

Any individual—up to certain income levels—with earned income can put away $5,500 this year, $6,500 if you're 50 or over. The contribution window starts to phase out at $112,000 for singles, $187,000 for married couples filing jointly. If you convert an ordinary IRA to a Roth, you have to pay taxes on the funds.

You can get at your own contributions any time, free of taxes or penalties, but there's a five-year wait for the earnings. (Each conversion has its own five-year wait for that money). Best bet: leave the money in the account to grow over time, available for special needs like a down payment. It stays tax-free, even for your heirs. You don't have to withdraw anything at 70 1/2.

For nearly 30 years, Mike Nickerson has owned and managed a small, full-service accounting practice in the Midcoast. He holds a bachelor's degree in accounting from University of Southern Main and a master's degree in financial planning from Bentley University.

He is a past board member and president of the Maine Society of Certified Public Accountants and currently serves on the Maine Board of Accountancy.

An aged rock musician, Nickerson now finds musical enjoyment playing upright and electric bass in a variety of bands spanning folk to jazz music genres. He and his wife have three grown children, and they enjoy their free time hiking, kayaking, golfing, bicycling and motorcycling.

http://www.nickersonpa.com/