Provided by Craig S. Lundquist, MBA on behalf of Wealth Advisors located at Ideal Credit Union*
Why do so many people choose a Roth IRA rather than a traditional IRA?
The Roth IRA changed the whole retirement savings perspective. Since its introduction, it has become a fixture in many retirement planning strategies. Here is a closer look at the trade-off you make when you open and contribute to a Roth IRA – a trade-off many savers are happy to make.
You contribute after-tax dollars. You have already paid income tax on the dollars going into the account, but in exchange for paying taxes on your retirement savings contributions today, you could potentially realize greater benefits tomorrow.1