Your financial professional can assist you in reviewing your financial situation. The main difference between a Roth IRA and a Traditional IRA is when you pay taxes. Contributions to a Roth IRA are made from after-tax income. Roth IRA contributions grow tax-free and are not taxed when withdrawn for qualified reasons. You may also want to consult a tax professional.
Contributions grow tax-deferred.
While the Roth IRA may provide significant benefits for many investors, it should be considered in relation to other retirement savings opportunities. If your company is not matching any of your own contributions, a Roth IRA may provide more flexibility for you. If you're thinking of converting from a Traditional IRA to a Roth IRA, project your tax rate, income level, and date of retirement.