Save on Taxes With New IRA Rules

Access to More of Your Money: If you cash out a traditional IRA or 401(k) before you're 59 and a half, you're subject to hefty taxes and penalty fees. But if you've had a Roth IRA for more than five years and you're at least 59 and a half, you can make a tax- and penalty-free withdrawal any time. And if you need access to your money before that, you'll only have to pay a 10% penalty.

Save More for Later: If you have a traditional IRA, you have to start receiving distributions once you hit 70 and a half. With a Roth IRA, you're not required to receive distributions, meaning you can put off your payouts, the Journal notes.

More for Your Heirs: Since Roth IRA funds are invested after tax, your heirs aren't taxed when your estate is passed on.

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How to Roll Over Your 401(k) Into an IRA

Daily Deduction: Roth v. Traditional IRAs