With a Roth IRA, after five years you can make withdrawals before age 59 1/2 without a penalty but you must pay taxes on the withdrawals.

Retirement planning refers to financial strategies of saving, investments, and ultimately distributing money meant to sustain oneself during retirement. Many popular investment vehicles, such as individual retirement accounts (IRAs) and 401(k)s, allow retirement savers to grow their money with certain tax advantages.