As a general rule, Cramer said he likes the Roth IRA for those in the 25% tax bracket or lower because investors can take advantage of that low tax rate and pay their taxes now and won't have to worry in the future. The lower your income, the lower your tax rate and the more a Roth IRA makes sense, he concluded.
Off the Tape
In his "Off The Tape" segment, Cramer sat down with John Stein, co-founder and CEO of the privately held Betterment, an online financial adviser and asset manager.Stein said that he found most financial Web sites too complicated for average investors to use, which is why he created Betterment to provide a "delightful" experience with great returns. Investors can start with any amount and get end-to-end service from great advice to active management and even tax accounting all included. Stein said that Betterment has a simple and fair fee structure ranging between just 0.15% to 0.35% and has real people investors can phone or email when they have questions. Cramer said that Betterment is a Web site that all investors should check out. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC