The type of individual retirement plan you choose today can have a major impact on your future savings and future tax liability. Deciding between a Traditional IRA and a Roth IRA is not as simple as flipping a coin; choosing between one of the two will mean either paying tax today or paying tax down the road. 677 more words
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The following article was published by the IRS.
Many people find it necessary to take out money early from their IRA or retirement plan. Doing so, however, can trigger an additional tax on top of income tax taxpayers may have to pay. 280 more words
The Roth IRA has become a popular planning tool since it was established by the Taxpayer Relief Act of 1997. Originally envisioned as a way for Americans of more modest means to efficiently transfer wealth to the next generation, the Roth IRA offers a number of potential advantages over a Traditional IRA that are particularly attractive to those that are more affluent. 944 more words
The Roth IRA offers a huge tax break to retirement savers. Even though many people prefer the tax deductions that only traditional IRAs offer, Roth IRAs have the trade-off benefit of letting you take tax-free withdrawals once you retire. 751 more words