If you can open a Roth IRA, do it now

— -- Q: What's a good way to open a Roth IRA account?

A: Some online investors just rush out and open taxable brokerage accounts and start trading. But that's a mistake.

If you meet the Internal Revenue Service's rules and are eligible for a Roth IRA, one of these accounts may be a better move.

Roths have strict contribution limits, but they offer great tax benefits. With both a taxable brokerage account and a Roth IRA, you invest with after-tax dollars. But Roth IRAs offer compelling tax advantages over a taxable account: Namely, you can withdraw money tax-free from a Roth IRA. And unlike traditional IRAs, Roth IRAs don't have minimum required withdrawals when you reach a certain age. That means you can give a Roth IRA to a beneficiary and allow the money to compound, tax free, for decades.

How do you set up a Roth IRA? Just about every brokerage firm and mutual fund company will create a Roth IRA account for you. Then, it's up to you to decide what to put in that account.

You could open the account with a low-cost mutual fund group and invest in mutual funds for your Roth IRA . Or you could open a roth IRA account with a discount stock broker that offers low-cost trades, including within Roth IRAs. There, you could buy stocks, or buy various exchange-traded funds (ETFs) and build a diversified portfolio for low cost.

Here's a link to the IRS publication that will answer more questions about Roth IRAs.

Matt Krantz is a financial markets reporter at USA TODAY. He answers a different reader question every weekday in his Ask Matt column at money.usatoday.com. To submit a question, e-mail Matt at mkrantz@usatoday.com.