We all know the Roth IRA is a great retirement account with several benefits-our distributions will be tax free at retirement, our contributions can come out at any time and there is no mandatory distribution at age 70 1/2. 

Suze Orman's recent column suggests many of us who will have a mortgage at retirement may want to use our Roth account to pay off the mortgage.

This year, individuals with modified adjusted gross incomes below $99,000, and married couples filing a joint return with income below $156,000, can invest the full $4,000 in a Roth. Contributions are reduced for individuals with incomes between $99,000 and $114,000, as well as married couples with incomes between $156,000 and $166,000. (You can contribute $5,000 if you're at least 50 years old.)

I have a better idea. After 15 years, your mortgage balance will be about $217,000. To pay it off in full you would need a 401(k) balance of about $335,000 to net the $217,000 after taxes. (Withdraw $335,000 in one year and chances are you'll be stuck in the 35 percent tax bracket.)

If you had at least $217,000 in a Roth IRA instead, you would be in great shape, because that $217,000 could be withdrawn tax-free. If you ask me, saving $217,000 is a lot easier than saving $500,000, or even $335,000.

retirement