Traditional IRAs and Roth IRAs both offer tax-advantaged growth of money. The contribution for both account types for 2021 is $6,000, or $7,000 if over age 50. The biggest difference between the account types comes down
to when you pay taxes on the money.

With a Roth IRA, you pay tax now.
You contribute to a Roth IRA using aftertax money, and you can’t deduct the contribution from your taxable income. But when you do withdraw the money in retirement, it’s tax-free.

Roth IRA contributions are also subject to certain income limits. A single filer and head of household can make a full contribution if your income is below $125,000 and a partial contribution up to $140,000. For married filing jointly, you can make a full contribution if your income is less than $198,000, and a partial contribution up to $208,000.

With a traditional IRA, you pay tax later.
When you contribute to a traditional IRA, if your income is below certain limits, you may be eligible to deduct the contribution from your adjusted gross income, which means you won’t pay tax on it now. Beginning at age 59 1/2, you can withdraw money from your traditional IRA; at that time, you will pay income taxes on the amount withdrawn.

Hey ya’ll ! I really love finances and talking about ways to make it easier to make more, save more, give more, and of course spend more. So most of the stuff we will be diving into will be related to finances with the odd topic here and there, plus maybe a special appearance from Rocko, my big pittie baby! I want to start off with easier concepts and the basics of money and work my way into the more difficult and nuance topics. You may be asking, why would I ever listen to you about anything? That’s a fair point, and you don’t have to. However, I would love to take this journey with you into the financial world and together we can learn and grow, not only our knowledge but our bank accounts too! I am not a Financial Advisor, any investment commentary are my opinions only.

#Invest #LearnToInvest #StockMarket…(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