Did you know that money deposited to a Roth Ira, while not deductible, may be withdrawn with no penalty? Here’s what this means for you: If you are struggling between the need for an emergency account and saving for retirement, consider opening a Roth IRA, and within the account just buy a CD. As you are able to save more than the Roth limits ($5000 this year or $6000 if you are 50 or older this year, 2012) you will have built up an emergency account outside the Roth and can begin to invest the Roth more aggressively. No, you can’t have you cake and eat it, too, but your Roth can perform double duty helping you jump start your retirement savings while acting as an emergency fund. A no-lose proposition.