What is the difference between a Roth IRA and a traditional IRA?

The main difference is when you get the tax break. Contributions to a traditional IRA may be tax-deductible if you qualify, and you generally pay ordinary income tax when you withdraw the money in retirement. Contributions to a Roth IRA are not deductible, but qualified distributions (including earnings) are tax-free.

Both accounts share a combined annual contribution limit, but Roth IRA contributions can be reduced or barred by income. Traditional IRAs generally require required minimum distributions (RMDs) in later life; Roth IRAs do not require RMDs for the original owner. Which fits better depends on whether you prefer a deduction now or tax-free withdrawals later.

Source: Traditional and Roth IRAs — IRS

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