Daily Deduction: Roth vs. Traditional IRAs

Given the number of times we've written about the subject, hopefully you're familiar with the basic difference between a Roth IRA and a traditional IRA.

If this has escaped you, however, here's a brief refresher: Contributions to a traditional IRA are deductible, and contributions to a Roth IRA are not. Plus, when you retire and receive distributions from a traditional IRA, they are taxed. When you receive them from a Roth IRA they are not. So you have a choice: Be taxed on your retirement savings now, or later.

That's the most known difference between the two, but we'll help you fill in the details, so that you can make a truly informed decision about which retirement account is best for you.

Contributions

...