There are many different types of IRAs, but for the great majority of savers, a Roth IRA is the best choice.

Unlike most types of IRAs, contributions to Roth accounts aren't tax deductible. But Roth IRAs more than makeup for that because withdrawals aren't taxed when you retire, as they are for other types of IRAs.

Invest $1,000 a year for 20 years in a Roth IRA that has an 8% annual return and that retirement account will be worth about $50,000 -- $20,000 in contributions and $30,000 in earnings. It's all yours. The government won't take a penny.

Roth IRAs have another huge advantage: Contributions can be withdrawn, penalty-free, anytime you need the money. Other IRAs charge a 10% penalty on any withdrawals before turning 59 1/2.

Click here to see our 6 simple rules for a successful IRA.