IRAs (Individual Retirement Accounts) are one of the more common vehicles for retirement investing because they offer several tax advantages. There’s the Roth IRA and the Traditional IRA and the biggest difference between the 2 is when you get your tax break.
- Traditional IRA: Your contribution is tax deductible. You pay taxes when you take distributions, or make withdrawals, in retirement.
- Roth IRA: A Roth IRA works in reverse of a traditional IRA. your withdrawals in retirement are not taxed, and your contributions are not deductible.
Contact us if you want to learn more about which is better for your situation.