There are two main types of IRAs, the Traditional and the Roth. The Traditional IRA allows you to contribute money that has not yet been taxed. This is considered pre-tax income. A Roth IRA is where you contribute funds you’ve already paid taxes on. This video talks about how these two differences can affect you.

⏱ Time Stamps:
00:00 Intro
00:56 Tax Differences
01:53 Early Withdrawals
03:26 Required Minimum Distributions (RMDs)
04:17 Income Limits
05:15 Tax Free Growth
05:53 Deadlines and Limits
06:17 Which is best for you?
07:11 Outro

#TheWealthWorkshop #personalfinance

“If you’re looking to build your wealth mindset, come on into the workshop!”
▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂
What we use to track and build our wealth:

► M1 FINANCE Open an account and start investing:
▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂
➤ CONTACT (for business inquiries only): thewealthworkshopofficial@gmail.com

DISCLAIMER: None of this is meant to be construed as investment advice. We are not financial advisers. These videos are for educational purposes only. No official financial advice is being given. Please always check with a professional before making any investments or financial decisions. Your investments are your sole responsibility, these videos merely share our own opinions with no guarantee of gains or losses.

DISCLAIMER: Links included in this description might be affiliate links. If you purchase a product or service with the links that we provide, we may receive a small commission. At no charge to you, this supports the channel, so thank you!…(read more)

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 retirement planning, one of the most important decisions you will make is which type of IRA to choose. While both Traditional IRA and Roth IRA offer tax-advantaged savings for retirement, there are some key differences between the two that can help you decide which one is the best fit for you.

The main difference between Traditional IRA and Roth IRA is the timing of the tax benefits they offer. A Traditional IRA allows you to deduct your contributions from your taxable income in the year you make them, while a Roth IRA allows you to withdraw your contributions tax-free in retirement.

In addition, the amount you can contribute to a Traditional IRA is limited by your income, while a Roth IRA has no income limits. This means that if you make too much money to contribute to a Traditional IRA, you can still take advantage of the tax benefits of a Roth IRA.

When it comes to withdrawals, Traditional IRAs require you to start taking Required Minimum Distributions (RMDs) at age 70 ½, while Roth IRAs do not have this requirement. This means that you can keep your money in a Roth IRA for as long as you want and not have to worry about taking RMDs.

Finally, Roth IRAs offer more flexibility when it comes to withdrawals. You can withdraw your contributions at any time without penalty, while withdrawals from a Traditional IRA are subject to taxes and possible penalties.

When deciding between a Traditional IRA and a Roth IRA, it is important to consider your individual financial situation. If you are in a high tax bracket now and expect to be in a lower tax bracket in retirement, a Traditional IRA may be the better option. On the other hand, if you expect to be in the same or higher tax bracket in retirement, a Roth IRA may be the better choice.

Ultimately, the best IRA for you depends on your individual financial situation and goals. It is important to do your research and talk to a financial advisor to determine which type of IRA is the best fit for you.