People toss around the words, “Roth IRA” and “Traditional IRA” in everyday casual conversation, but how are they different? What are the advantages to having one over the other?
This time of year, many people are considering ways to save for retirement. If you are self employed or do not have a retirement option at your current job, an IRA is a simple way to start saving for retirement. The next question is to determine whether you should select a Traditional vs Roth IRA.
While these two different types of accounts certainly share some similarities, they also have some key differentiation- primarily dealing with tax deductions, accessibility of funds, and eligibility standards. The main question to decide for yourself: Do you prefer to owe the IRS now or later?
Understanding all the distinctions is crucial in deciding which IRA is the better choice for you!
In this video I will explain the main differences and areas that I would be considering when choosing each type.
If you are looking for even further detail on this topic – check out this site that will lay out specifics including income limitations and contributions maximums – https://www.rothira.com/traditional-ira-vs-roth-ira
As always- reach out with any questions at justin@universalbookkeeper.com
