She uses aftertax salary--no big sacrifice, given her low bracket--to fund a Roth individual retirement account.

FORBES

Levchin, chairman of social review site Yelp, sold 3.1 million shares of Yelp held in his Roth individual retirement account.

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A. A traditional IRA is a joint retirement account and a ROTH IRA is an individual retirement account.

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When considering an IRA, the major distinction is between the traditional IRA and the Roth IRA. An Individual Retirement Account (IRA) provides certain tax advantages, and anyone who wants to save for retirement can set one up.

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Remember: If your investment is held within an individual retirement account, Roth IRA, 401(k) or other tax-sheltered retirement plan, it isn't subject to cost-basis reporting.

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One of the great things about converting a traditional Individual Retirement Account to a Roth is that you can play backsies.

FORBES: How to Play Roth Conversion Backsies with the IRS

To maximize aid, delay converting an individual retirement account to a Roth IRA since many financial-aid offices count any converted money as income.

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Since 2010, investors have been allowed to convert individual-retirement-account assets to Roth IRAs without income limits.

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