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Aleks04 [339]
3 years ago
5

What is a major difference between a traditional Individual Retirement Account and a Roth IRA

History
2 answers:
PilotLPTM [1.2K]3 years ago
6 0

Contributions are taxed differently

dimulka [17.4K]3 years ago
3 0

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

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