Roth IRA’s are tremendous. Pay tax today on a small amount, have no tax later on a large amount. Try to get some money in Roth each year, even if it means cutting back on the 401(k) at work or using a Roth 401(k). Not all employers offer it but it can be an attractive retirement tool for certain people. It will be nice at retirement time to have two separate piles of cash. One is fully taxable. One is not. You will be able to control your tax life better if you have these options.

I envision a time in the not too distant future where they will stop letting you put new money into Roth. The old stuff will still be good, but they won’t allow any new money. The government is giving away future tax revenue to get a small amount now. At some point they will realize their mistake.

Converting old IRA money into Roth can also be a good idea. It depends on your individual tax situation. Partial conversions can be done, especially in years when other income is low. Conversions can be painful today, but can pay off nicely in the long run. Be sure your tax situation is appropriate for a conversion.