The Difference Between Traditional and Roth IRA

There are two types of Individual Retirement Accounts (IRAs), the traditional IRA and the Roth IRA, each with different tax consequences.

A traditional IRA allows you to deduct your contributions from your taxes.

This means you pay less in taxes now, but you will be taxed on the money when you withdraw it in retirement.

A Roth IRA does not offer an up-front tax deduction, but your withdrawals are tax-free in retirement.

There is no age limit for contributing to a Roth IRA.

Traditional IRAs have stricter eligibility requirements. Click through to learn more.

A traditional IRA required minimum distributions must begin by age 70½.

With a Roth IRA, there are no required distributions during the owner’s lifetime.

Swipe up to learn more of the Differences Between Traditional and Roth IRA