Updated: Apr 14
National Financial Literacy Month is celebrated in April, which is a great opportunity for us to check and promote financial literacy. We will be sharing great readership, scholarship, and cinematics as we raise awareness about this important topic. In this readership we discuss the difference between a Roth and Traditional IRA.
What is A Roth vs. Traditional IRA?
The main difference between Roth vs traditional IRAs is the timing of the tax bill. With a traditional IRA, you get a tax break in the year you make your contribution, if you’re eligible. That means you will pay income taxes on contributions and any growth they achieved in retirement when you withdraw them. With a Roth IRA, you pay taxes on what you contribute today, but you get a tax break in retirement. (Andrea Coombes, Benjamin Curry)