asked 233k views
4 votes
What is a major difference between a traditional Individual Retirement Account and a Roth IRA

2 Answers

2 votes

The main difference is when you pay income taxes on the money you put in the plans. with a traditional IRA you pay thee taxes on the back end that is when you wittdraw the money in retirement. But, in some cases, you may escape taxes on the front end when you put the money into the account.

With a Roth IRA it's the exact opposite. You pay the taxes on the front end, but there are no taxes on the back end

7 votes

Contributions are taxed differently

answered
User Jacek Koralik
by
7.8k points
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