There are no tax exemptions when you contribute money to a Roth account. The benefits are the tax-free capitalization of investment returns and the tax-free distribution of accumulated money. You can contribute to a Roth IRA or a Roth 401 (k). You can also convert a traditional IRA or 401 (k) into a Roth IRA.

Life insurance may be a more efficient vehicle than IRAs or annuities due to the way distributions are structured. For example, you can first withdraw your base, which is a tax-free event. You can then structure your withdrawals as loans with tax-exempt policies and events that are reimbursed with tax-free death benefit when you finally die. IRA withdrawals are always subject to income taxes, and annuity distributions require that profits come out first and be taxed as ordinary income.