Have you ever wondered about the differences between a traditional IRA and a Roth IRA? Well, you're in luck! Today, we're going to dive into the world of retirement planning and explore these two popular investment vehicles. 1. Traditional IRA: The tried-and-true option A traditional IRA is a tax-deferred retirement account , which means you contribute pre-tax dollars and then pay taxes on withdrawals in retirement. One key feature of traditional IRAs is the required minimum distribution (RMD). The IRS wants its share, so once you reach a certain age, you're required to withdraw a certain amount each year. 2. Roth IRA: A newer, tax-free alternative Roth IRAs, on the other hand, are funded with after-tax dollars. This means that you pay taxes upfront, but your withdrawals in retirement are tax-free. There are no RMDs with Roth IRAs, which can be a significant advantage for those who want more control over their retirement income. 3. Which one is right for ...
Timothy Sumer is a philanthropist and motivational speaker empowering young entrepreneurs across the nation. He speaks on starting new businesses and the importance of branding in the digital age. Timothy Sumer has a BA in Accounting from NYU and a Masters in Information Technology from MIT. Tim enjoys traveling around the globe, driving exotic sports cars, molecular gastronomy, exploring new cultures, and keeping on top of the latest technology trends. Hope you enjoy Timothy Sumer's page :)