When you want to save money for retirement in an IRA, it can be tricky knowing which kind to use – traditional or Roth. Each kind of IRA offers its own pros and cons.

Roth IRAs do offer a lot of perks traditional IRAs don’t. Here are some of the biggest advantages of setting one up.

Your Withdrawals Are Tax-Free

While you won’t get a tax break on the contributions you make into your Roth IRA, your earnings you take out someday won’t be hit with any kind of taxes. In your retirement years, that can be a big bonus, particularly if you plan to be in a higher tax bracket. And let’s be honest, who doesn’t want tax-free money in their retirement years?

In order to get the money tax free though, you have to meet the criteria. The Roth IRA has to be in place for five years before you take withdrawals. And to use it for retirement without being taxed or penalized in any way, you have to be at least 59 and a half.

You Can Take Your Contributions At Any Time

With most retirement plans, you’re penalized for taking out any money before you reach a certain age – whether it’s your contributions or your earnings. But with Roth IRAs, things are different because your contributions have already been taxed.

You can take out your contributions, which is the money you’ve put in each year, at any point without paying a penalty. So if you put $3,000 in each year for 10 years, that’s $30,000 in contributions you can withdraw at any time, should you need them. While it can be tempting to raid your Roth IRA for big expenses in your life, you’ll do your future self the most good by letting them ride in your account.

You Can Use It to Buy a Home

If you’re a first-time homebuyer, you can take into your Roth IRA to help with the down payment. There are a few conditions though, so don’t think you can pull all your money out and go after your dream house.

You can take out up to $10,000 for that purpose. And the money can’t be used to pick out new, cool furnishings for your home. It has to be used for things like closing costs and down payments.

Finally, before you can use your Roth to help you with your homeownership goal, you have to have held the account for a minimum of five years.

You Don’t Have to Take Money Out By a Certain Age

Unlike traditional IRAs, Roth IRAs don’t require you to take out minimum distributions when you reach the age of 70 and a half. That means your money can keep growing tax-free as long as you need it to.

While not everyone will be in this enviable financial position in their golden years, it’s a perk that those who plan to be well off in their retirement will love. It’s especially helpful for those who would like to leave more money behind for their heirs.