Roth IRAs debuted in 1998, but the difference between them and traditional IRAs can still cause confusion. Traditional IRA contributions are often tax deductible. Withdrawals, however, are usually taxable and may trigger a 10% penalty before age 59½. Roth contributions aren’t deductible, but you can withdraw them tax- and penalty-free any time. And withdrawals of Roth earnings are typically tax-free if you’re age 59½ or older. Traditional IRAs require minimum distributions starting at age 73 (75 if you were born in 1960 or later). Roth IRA owners have no required withdrawals during their lifetimes. Contact us to discuss the best ways for you to save for retirement.
