Roth IRA vs. Traditional IRA

Stumped over choosing between a Traditional or Roth IRA? Both types of IRA have attractive benefits, and choosing one or both can be difficult. Exploring your options will help you determine which type best suits you and your retirement needs. To help you decide, let's go over summaries about Traditional and Roth IRAs.

Traditional IRAs

  • Contributions often are tax-deductible.
  • Earnings grow tax-deferred.
  • Distributions generally are taxable.
  • Distributions before you reach age 59 1/2 are subject to penalty unless you meet an early distribution penalty exception. 
  • Required minimum distributions must begin at age 70 and half.

Roth IRAs

  • Contributions are not deductible.
  • Earnings grow tax-deferred.
  • Contributions generally can be distributed tax-free at any time.
  • Earnings can be distributed tax-free if the Roth IRA holder first made a Roth IRA contribution at least five years ago, and is age 59 1/2, disabled, deceased, or paying first-time home buyer expenses.
  • Distributions are not required until after the Roth IRA holder dies.

While these overviews of Traditional and Roth IRAs give you a great starting point for investigating IRA options, our experts at CorTrust Wealth Management can help you dive deeper into your retirement choices. Schedule a free, no obligation consultation with our experts today.