Traditional and Roth IRAs can help you hold on to more of your money!
Choosing between a traditional IRA and a Roth IRA
The main question to consider is: Do you want to save on taxes now or when you retire?
If you want to save on taxes now, choose a traditional IRA.
Traditional IRAs make sense if you want a tax deduction now or if you think you’ll be in a lower tax bracket when you retire.
If you want to save on taxes when you retire, choose a Roth IRA.
Roth IRAs are a good fit if you don’t need the tax break now. If flexibility is what you need consider a Roth IRA.
A Roth IRA is a more flexible investment because:
- You can withdraw regular contributions at any time, tax-free and penalty-free.
- You do not have to take mandatory distributions at age 70 ½.
*Not intended as tax advice. Please consult a tax professional.