We know there are lots of different types of retirement accounts, and it sure can get confusing! Here's a simple illustration of the differences between Traditional and Roth IRAs.
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.
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Individual Retirement Accounts: An Introduction
Traditional vs. Roth IRAs: How to Choose
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