ROTH IRA VS. TRADITIONAL IRA: IS THERE A DIFFERENCE?

It's never too early to start saving to achieve your retirement dream. One of the best ways to do that is by opening an Individual Retirement Account (IRA).

We’ll review the key differences between Roth and Traditional IRAs to help you make an informed decision about your retirement savings.

WHAT'S THE DIFFERENCE?

[{"selector":"#anim-bfd3930e-bb93-4ed3-871e-19fc5ed8c061","keyframes":{"opacity":[0,1]},"delay":350,"duration":1400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4953f608-7351-42ac-b876-51938f4f8575","keyframes":{"transform":["translate3d(0px, 100.05051%, 0)","translate3d(0px, 0px, 0)"]},"delay":350,"duration":1400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

A traditional IRA offers tax-deferred growth and tax-deductible contributions, meaning you can deduct your contributions from your taxes in the year you make them.

A Roth IRA is an account offering tax-free growth and retirement withdrawals. Contributions to a Roth IRA are made with after-tax dollars.

Roth IRA gives you the flexibility to withdraw your savings at any time. Traditional IRAs allow you the benefit of a tax deduction in the current (contribution) year.

Swipe up to read more about the contribution & tax deduction limits, early withdrawal penalties and more!

TOP STORIES

[{"selector":"#anim-5ad1edaa-8026-4235-adad-65b9a18d56cb","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5512a400-3591-4c3e-bc6c-7e6eb9a0eed3","keyframes":{"transform":["translate3d(259.40593%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4dcc9c75-8b72-4ec7-a26d-c46775b2ddad","keyframes":{"opacity":[0,1]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ccdf8303-b644-4fe0-bce1-4432029015aa","keyframes":{"transform":["translate3d(42.07921%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c7ab766b-35cd-4d19-ab34-78996358a5cc","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8dde8c82-ac16-4668-9ce6-3f0b4b0ffd55","keyframes":{"transform":["translate3d(151.50000%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ca108966-b608-43d4-a2e7-1eb99ab51aa5","keyframes":{"opacity":[0,1]},"delay":500,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f4535f1c-2d8a-45e6-ae95-de2f0207be98","keyframes":{"transform":["translate3d(-44.55445%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":500,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-91949cb6-0965-4abd-8bc5-a4eabc659744","keyframes":{"opacity":[0,1]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-cdf4fef0-1a4a-4bb6-83c8-92b4ec038889","keyframes":{"transform":["translate3d(-260.89109%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-95a1cb11-fc0e-4036-b5da-49fd6128e4ed","keyframes":{"opacity":[0,1]},"delay":400,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a0c83c64-dab7-4b26-9054-86b1d68da83b","keyframes":{"transform":["translate3d(-154.5%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

ROTH IRA VS. TRADITIONAL IRA: IS THERE A DIFFERENCE?

It's never too early to start saving to achieve your retirement dream. One of the best ways to do that is by opening an Individual Retirement Account (IRA).

We’ll review the key differences between Roth and Traditional IRAs to help you make an informed decision about your retirement savings.

WHAT'S THE DIFFERENCE?

A traditional IRA offers tax-deferred growth and tax-deductible contributions, meaning you can deduct your contributions from your taxes in the year you make them.

What Is a Traditional IRA?

A Roth IRA is an account offering tax-free growth and retirement withdrawals. Contributions to a Roth IRA are made with after-tax dollars.

What Is a Roth IRA?

Roth IRA gives you the flexibility to withdraw your savings at any time. Traditional IRAs allow you the benefit of a tax deduction in the current (contribution) year.

Tax Consequences

Swipe up to read more about the contribution & tax deduction limits, early withdrawal penalties and more!

TOP STORIES

The Best Gold IRA Companies of 2022 (Ranked & Reviewed)

6 Best AI Trading Software of 2022