Roth vs. Traditional IRA
By sunny66
@sunny66 (23)
United States
February 8, 2007 10:54am CST
Can someone enlighten me on the topic of Roth vs. Traditional IRAs? In the simplest way you can put it, which is the better option? I tried to get information online but the more I read up on it, the more I get confused. Any thoughts, anyone?
1 response
@sylvrrain (659)
• United States
8 Feb 07
Ok, I can try to make this simple.
Depending on your age and income either may be best for you.
With a ROTH IRA, you do not get to deduct your yearly contributions from your federal tax return. The benefits from this, you do not have to pay taxes on this money when you withdraw it. The taxes are already paid.
With a Traditional IRA, you can deduct a set amount from your yearly tax return. More if you are over 50. You will have to pay taxes on this money when you withdraw it.
If you need the tax deduction, go for the traditional. If you do not need the tax deduction, go for the ROTH.
