It’s a common question: what are the differences between a traditional IRA vs. a Roth IRA?
IRAs come in two basic flavors: traditional and Roth. Traditional IRAs defer your tax liability until you withdraw from the account, and Roth IRAs take out your tax liability at the time of your investment.
Investors commonly ask about the differences between these accounts, and the differences are pretty significant. If you are thinking about putting money into one of these accounts, you should understand the implications.
In the time it takes your computer to load, we’ll break down the basic differences between a traditional IRA and a Roth IRA.
The While-You-Wait video series goes over important financial topics when life puts us on hold. Reheating your lunch? Rebooting your computer? That’s the perfect time to watch. Leave a comment on what topics you’d like to see us cover next.
To learn more about IRAs and to figure out which account is right for you, contact a financial advisor.
The content contained in this blog post is intended for general informational purposes only and is not meant to constitute legal, tax, accounting or investment advice. You should consult a qualified legal or tax professional regarding your specific situation. Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money.
Any reference to the advisory services refers to Personal Capital Advisors Corporation, a subsidiary of Personal Capital. Personal Capital Advisors Corporation is an investment adviser registered with the Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training nor does it imply endorsement by the SEC.