82 – Roth vs. Traditional IRA
Ken continues his discussion of IRAs, this week the difference between a Roth and Traditional IRA. As discussed, both accounts are tax deferred. However, with Traditional IRAs, the money you put in can be tax deducted immediately. On the flip side, the money put in a Roth is taxed that year, but the withdrawal at retirement is tax-free. Based off of this information, Ken encourages you to understand what tax bracket you fall in – that will help you determine which one better suits your situation.