Do you have enough money to
retire?
- IRA Roth & Traditional -
The two types of IRAs for
individual investors are Roth and
Traditional. These IRAs have some important
differences, especially when it comes to income limits and
tax benefits.
In a Roth IRA, you make contributions on an after-tax basis, and
any earnings grow free of federal taxes, which means you don't
get a tax deduction now, but you won't need to pay taxes on the
earnings later.
A Traditional IRA's key advantage is tax deferral, while
possible deductibility means the potential for tax savings
today. Any earnings you make may grow tax deferred until
retirement. You may be able to deduct your contributions from
your current taxes.
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