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The Roth IRA is not an investment. It is a vehicle for investing into instruments like mutual funds, stocks, bonds, bank certificate of deposits and real estate. If you rollover your pension plan into a Roth IRA, it would be one of the smartest moves you will make. If you follow the rules prescribed by the Roth IRA, you will be making a lot of retirement money and all tax free.
If you have a pension plan, you can easily rollover to a Roth IRA. However, you will have to pay taxes on the amount you rollover as a Roth IRA accepts contributions after tax. But you should not get disheartened because you will be making plenty of money to have a comfortable retirement. You just have to let your savings accumulate by investing in whatever you want. In that regard, a Roth IRA is more flexible than any other retirement savings plan.
The maximum contribution for 2007 to a Roth IRA is $4,000 for those who are 49 years and less. It is $5,000 for those who are 50 and above. If you act before April 15, 2008, you can invest the amount which will give you a good start for your retirement savings. For 2008, those who are 49 and less can contribute a maximum of $5,000; and those who are 50 and above can contribute $6,000.
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