Timothy Sumer

In this video I am going to Easily Explain what is a Roth IRA? What is a Traditional IRA? What are the similarities between a Roth IRA vs Traditional IRA? What is better a traditional IRA or a Roth IRA? Which should you choose a Traditional IRA or a Roth IRA? Both of these accounts are individual retirement accounts, which means you can have them in ADDITION to your employer sponsored retirement plans such as your 401k, 403b, etc. The deadline to contribute to both of these accounts is April 15th - because there are contribution limits! Both the traditional and the ROTH IRA, the max you can contribute to it is $6000 per year as of 2021, and $7000 per year if you're over the age of 50. You cannot contribute $6000 each to both a ROTH and the Traditional IRA, the max contribution is $6000 across both accounts. The biggest difference between the ROTH IRA and the Traditional IRA is how they are taxed. In a TRADITIONAL IRA, your get a tax deduction for your contributions dire