These Charts Show How Traditional IRAs and Roth IRAs Stack Up Against Each Other

July 13, 2022

Patrick Villanova, CEPF

When saving for retirement, you’ll typically have two choices for how you’ll fund your IRA. With a traditional IRA, you’ll contribute pre-tax dollars that will grow inside the account tax-free and be taxed when the money is withdrawn. A Roth IRA, however, taxes your initial contribution so that you don’t have to pay taxes when you withdraw your savings.

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