What's the difference between a traditional IRA and Roth IRA?

By Arin Fife
April 25, 2017

These are both defined contribution plans, but the main difference is the way that the contributions are taxed. A traditional IRA, similar to a 401(k), is not taxed when contributions are made, but they are taxed at the time they are withdrawn.

With a Roth IRA you will pay regular income taxes on the money when it's contributed; however, when that money is withdrawn, you've already paid the taxes and there is not an additional income tax. There are some other differences and qualifications which really should be discussed with a qualified financial advisor when looking at what's the most appropriate plan for you.

Arin Fife is a family lawyer at Boyle Feinberg, P.C. in Illinois. To learn more about the firm, visit www.bffamlaw.com. Visit their firm profile here.

Back To Top

April 25, 2017
Categories:  FAQs

Add A Comment


Allowed HTML: <b>, <i>, <u>, <a>



Divorce Lawyers

Certified Divorce Financial Analyst

Find all CDFAs

Divorce Mediators

Find Divorce Mediators

Business Valuators / CPAs

Find Business Valuators / CPAs

Collaborative Practice

Find Collaborative Practitioners

Reason for your Divorce

Why did your relationship end? If there's more than one reason, choose the strongest factor.

Money Problems/Arguments
Physical/Emotional Infidelity
Physical/Mental Illness
Physical/Emotional Abuse
Alcoholism/Addiction Issues
Basic Incompatibility

Copyright © 2017 Divorce Magazine, Divorce Marketing Group & Segue Esprit Inc. All rights reserved. Reproduction in whole or in part without prior written permission is prohibited.