Traditional IRA vs Roth IRA
Which is better?
An IRA, both traditional and Roth, is an excellent tool to help you save for your retirement. But the question is always asked: which is better?
Since both types of IRA have advantages, the answer varies per person. To help us better understand the situation, let’s take a look at both types of IRA.
- Traditional IRA
- Contributions are made with pre-tax money
- At age 59.5 you can start withdrawing
- Money is taxed as earnings when withdrawn
- subject to a 10% penalty if withdrawn before age 59.5
- No income restrictions
