1. Tax advantage
All returns (dividends, capital gains, etc), are not taxed. In a normal taxable brokerage account, you would pay either normal income tax or long term capital gains taxes on your returns. This could be very high, >30%, depending on your income and state tax laws. Imagine putting $5,000 in a Roth IRA, that grows 6% every year. 30 years later when you are retired, you would have $28,700. You would not have to pay any taxes on all of this no matter how high your income is!
2. No minimum distribution
The IRS requires you to take minimum distributions on all your retirement accounts, except for for Roth IRAs, once you reach age 70\(\frac{1}{2}\). The amount is based on account balance and age.
3. Withdraw contributions with no penalty
You can withdraw your contributions anytime, without any penalties. Compare this to a traditional IRA, where you would have to pay normal income taxes as well as a 10% penalty if you are not 59 \(\frac{1}{2}\) years old. You do have to wait until you are 59 \(\frac{1}{2}\) years old and have held the account for over 5 years before you can withdraw any earnings though. For example, you put in $20,000 over a few years, but now need the money. Your account has grown to $25,000. You can withdraw $20,000 of the $25,000 anytime. Do be wary though, as any money you try to put back still must follow the maximum contribution limits, which is $6000 in 2019.
4. Tax Diversification
This 4th reason doesn’t apply to me, but may for many others. My employer offers a 401(k) that also has a Roth 401(k) option. However, if your employer-sponsored retirement plans doesn’t have a Roth option, then a Roth IRA is a great place for tax diversification. Tax diversification means your savings are spread around different types of accounts with different tax benefits. If your anticipated taxable retirement drastically changes, or if tax laws change drastically, have tax diversification in your retirement savings can help smooth out unknown factors.
Challenge yourself to save more for retirement! Comment on whether or not, and why, you contribute to a Roth IRA!
Other reads: Why you might want a pre-tax 401(k) vs a Roth 401(k)