Video
What is the Difference Between a Roth IRA and a Traditional IRA?
Hi, my name is Hannah Whatley, and I’m an advisor with Rather and Kittrell.
A common question that we get asked is “What’s the difference between a traditional IRA and a Roth IRA?”
The biggest difference is the tax treatment.
So, with a traditional IRA, you do not pay taxes upfront. When you retire or take the money out, you will pay regular income tax on that money.
The Roth IRA is the opposite – you are paying taxes up front, that way when you retire, you don’t owe any taxes on the money you put in or on the earnings that have grown, so that’s especially advantageous for younger savers, who are in their peak earning years, and also have plenty of time for those earnings to gro tax-free.
There are additional differences, so if you want to learn more, visit us at rkcapital.com. We’re here to help.
