Traditional and Roth IRAs differ mainly when it comes to taxation and required minimum distribution. Traditional IRAs allow for pre-tax contributions, but you must pay tax on the withdrawal once you reach 72. On the other hand, Roth IRA contributions are made from taxable income, and withdrawals are typically tax free as long as the money is in the account for at least 5 years. When it comes to your retirement planning, having an understanding of these two options can help ensure that you make the best decision for your financial future. Consult with a financial advisor so you can feel confident knowing that your retirement accounts will be set up in the most beneficial way possible.
If you have been thinking about investing in an IRA to help ensure a brighter financial future, peace of mind, and more options down the road, contact the experts at Brighton Securities in Rochester, NY. We invite you to learn more about us, call us with any questions you may have, and start planning your financial future today.

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Rochester, NY 14618
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LEARN MORE ABOUT: IRA Accounts

INVESTING IN A GOLD IRA: Gold IRA Account

INVESTING IN A SILVER IRA: Silver IRA Account

REVEALED: Best Gold Backed IRA

When it comes to planning for retirement, individuals have several options to choose from, one of which is choosing between a Traditional IRA and a Roth IRA. Both types of individual retirement accounts offer tax-advantaged savings for retirement, but they differ in how they are taxed and when the taxes are paid. Brighton Securities, a leading financial services firm, can help individuals understand the differences between Traditional IRAs and Roth IRAs to make an informed decision about which option is right for them.

Traditional IRAs are funded with pre-tax dollars, meaning that contributions can be deducted from taxable income, reducing current tax liabilities. However, withdrawals from a Traditional IRA are taxed as ordinary income in retirement. This can be advantageous for individuals who are in a higher tax bracket during their working years than they anticipate being in retirement. Additionally, individuals must start taking required minimum distributions (RMDs) from a Traditional IRA once they reach age 72, which can impact how much they have to withdraw each year and potentially push them into a higher tax bracket.

On the other hand, Roth IRAs are funded with after-tax dollars, so contributions are not tax-deductible. However, withdrawals from a Roth IRA are tax-free in retirement, including any investment gains. This can be beneficial for individuals who expect their tax rate to be higher in retirement than it is currently. Additionally, Roth IRAs do not have RMD requirements, giving individuals more flexibility in how and when they withdraw funds from their accounts.

At Brighton Securities, our team of financial advisors can help individuals assess their financial situation, goals, and preferences to determine whether a Traditional IRA or a Roth IRA is a better fit for their retirement savings strategy. We can provide personalized guidance on contribution limits, eligibility requirements, investment options, and tax implications to help individuals make the most of their retirement savings.

Ultimately, the decision between a Traditional IRA and a Roth IRA depends on individual circumstances and goals. Both types of accounts offer valuable tax advantages and can help individuals build a nest egg for retirement. By working with a trusted financial advisor at Brighton Securities, individuals can make informed decisions about their retirement savings that align with their long-term financial goals. Contact us today to learn more about Traditional IRAs, Roth IRAs, and how we can help you plan for a secure retirement.