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From Your Perspective:
Choosing an IRA

Home > Investing Goals: Invest for retirement > Path to retirement: First job > Choosing an IRA > Traditional vs. Roth IRAs

Choosing an IRA

1. Choosing an IRA

3. Traditional deductible IRAs

5. Traditional non-deductible IRAs

6. Traditional vs.
Roth IRAs

7. Why choose an IRA?

8. Picking an IRA portfolio

9. Make the most of an IRA

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Traditional vs. Roth IRAs

No one IRA is right for everyone. Each plan has pros and cons, and you need to weigh them all carefully.

	Pros	Cons

Traditional deductible	Earnings grow tax deferred	You have to pay taxes on the money when you withdraw it
	Contributions are tax deductible	You have to start withdrawing by age 70 1/2

Traditional non-deductible	Earnings grow tax deferred	Contributions aren't tax deductible
		You have to pay taxes on the money when you withdraw it
		You have to start withdrawing by age 70 1/2

Roth	Earnings grow tax free	Contributions aren't tax deductible
	You are not required to make withdrawals at any time	Your account must be open for five years and you must be at least 59 1/2 to qualify for tax-free status

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