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November 2, 2007, Newsletter Issue #90: Roth IRA vs. IRA
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Tip of the Week
Tax info IRA: Contributions to a traditional IRA are tax deductible as long as you meet certain income requirements. Just like with a 401(k) you won't be taxed on the money in your IRA until you take it out of the account. Contributions to a Roth IRA, on the other hand, are made with post-tax dollars and grow tax free. A Roth IRA benefits people who are in a higher tax bracket when they retire. It's impossible to predict this with certainty, but most people should fall into this category. When in doubt, choose the Roth IRA.
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