Roth IRAs are popular individual retirement accounts (IRAs). The unique perk of these accounts is the owner’s ability to make qualified withdrawals without incurring taxes as long as particular conditions are met. A Roth IRA is commonly mixed up with a traditional IRA. While there are some overlaps, you’ll want to know the critical distinctions between these two retirement accounts. The biggest difference between the two is the manner in which they’re taxed.

While contributions to traditional IRAs are typically made with pretax money, funds for Roth IRAs are generally composed of post-tax dollars. When you start pulling money out of your Roth, you won’t have to pay any additional taxes on it. If you’d like to learn more about how you can benefit from a Roth IRA, feel free to contact Lacy Financial.