what is the difference between a traditional ira and a roth ira
The two types of IRAs â Traditional IRAs and Roth IRAs â differ on income limits, age limits, and the Required Minimum Distribution (RMD). The main difference between a Traditional IRA and a Roth IRA is how theyâre taxed. (This is the tax deferred versus tax exempt distinction we referred to above.) If you choose a Traditional IRA, you donât pay taxes on your contributions until you make a withdrawal, usually in retirement.