Compare:  Roth vs Traditional IRA

It's that time of year! Contributing money to your IRA is a great way to build wealth. Here are the two types of IRAs to consider.

IRAs account for over 34% of retirement assets in the U.S. There are two main types of IRAs: Roth IRAs and Traditional IRAs.

What Is An Individual Retirement Account (IRA)?

IRAs are used to purchase stocks, bonds, mutual funds, target-date funds, exchange-traded funds, and more.

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Traditional IRA

The traditional IRA offers an upfront tax-deduction on contributions with taxable withdrawals during retirement. However, It doesn’t come with income limits.

Roth IRA

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Contributions to a Roth IRA are made with after-tax dollars, meaning you have already paid taxes on the money you contribute.

Current contribution limits for each are now $6500 for the year (up from last year when it was $6k)

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