Difference between a traditional ira and a roth ira

Reference no: EM131779673

Question: Discuss the essential difference between a traditional IRA and a Roth IRA

- The essential differences between a traditional IRA and a Roth IRA are, first, amounts contributed to a Roth IRA are tax-deductible in the current year whereas amounts contributed to a traditional IRA are not tax-deductible. However, upon withdrawal of amounts from the IRA at retirement, the withdrawn amounts are fully taxable from a Roth IRA but not taxable from a traditional IRA. Second, Roth IRAs are available to many more taxpayers as the AGI limits are much higher for Roth IRAs than for traditional IRAs.

- The essential differences between a traditional IRA and a Roth IRA are, first, amounts contributed to a Roth IRA are tax-deductible in the current year whereas amounts contributed to a traditional IRA are not tax-deductible. However, upon withdrawal of amounts from the IRA at retirement, the withdrawn amounts are fully taxable from a Roth IRA but not taxable from a traditional IRA. Second, traditional IRAs are available to many more taxpayers as the AGI limits are much higher for traditional IRAs than for Roth IRAs.

- The essential differences between a traditional IRA and a Roth IRA are first, amounts contributed to a traditional IRA are tax-deductible in the current year whereas amounts contributed to a Roth IRA are not tax-deductible. However, upon withdrawal of amounts from the IRA at retirement, the withdrawn amounts are fully taxable from a traditional IRA but not taxable from a Roth IRA. Second, traditional IRAs are available to many more taxpayers as the AGI limits are much higher for traditional IRAs than for Roth IRAs.

- The essential differences between a traditional IRA and a Roth IRA are, first, amounts contributed to a traditional IRA are tax-deductible in the current year whereas amounts contributed to a Roth IRA are not tax-deductible. However, upon withdrawal of amounts from the IRA at retirement, the withdrawn amounts are fully taxable from a traditional IRA but not taxable from a Roth IRA. Second, Roth IRAs are available to many more taxpayers as the AGI limits are much higher for Roth IRAs than for traditional IRAs.

Reference no: EM131779673

Questions Cloud

Minnies depreciation on the machine year : Minnie does not expense the asset under Sec. 179, and it is not eligible for bonus depreciation

Discuss concept of overhead in terms of flexible budgeting : Discuss the concept of overhead in terms of flexible budgeting, overhead cost variances and how each relates to a manager's ability to control various aspects.

What is meant by flotation cost and cost of debt : What types of projects require the least detailed and most detailed analysis in the capital budgeting process? Please explain.

Matrix in analyzing product lines : What advantages do you envision in using this matrix in analyzing product lines? Have you used this tool before?

Difference between a traditional ira and a roth ira : The essential differences between a traditional IRA and a Roth IRA are, first, amounts contributed to a Roth IRA are tax-deductible in the current year.

How companys culture and learning organizational abilities : Explain how your company's culture and learning organizational abilities may support or detract from a change initiative.

What is the experience qualification requirement : What is the experience qualification requirement, How many hours of continuing education are required

Provide advice to the management of fiji limited : You have been asked to provide advice to the management of Fiji Limited on treat the following items in the financial statements

Four models of national health care system : Explain which of the four models of national health care system best fits with your ranking of healthcare goals.

User Account

All Pages