We're Here to Help (315) 735-8571

Comparing Roth IRAs vs. Traditional IRAs

May 14, 2019

An IRA is money set aside for your retirement, with Traditional and Roth IRA options differing in their benefits and advantages. The biggest difference between the two is how your money is taxed. If you believe you will be in a higher tax bracket in the future, the Roth IRA is generally considered a better choice, and a Traditional IRA has certain benefits if you expect to be at a lower tax bracket at retirement time. Another difference is based on what you believe your future income tax to be, since a good amount of your income during retirement may be taxable.


Similarities Between a Roth IRA and Traditional IRA

In the past they have had the same contribution limits, and both allow you until April 15 for your previous tax year contribution. There are currently no minimum contribution limits to open either of these IRAs.For each year you plan to contribute to an IRA, check the income and contribution limits, which are subject to change.

The graphic to the right offers a quick comparison of the differences between these IRA types, to make it easier to decide based on your needs.


Other Comparison Considerations

When comparing IRAs, also consider:

  • There are ways to convert Traditional IRAs to Roth IRAs

  • The age you plan to retire

  • How much you expect to work or earn during retirement versus your current income


We can help you decide which type of IRA may be right for you. Learn more about First Source IRA options, and let us help you Invest Smarter. 

IRA Options: Learn More


Disclaimer: IRAs are products of First Source FCU and are federally insured by NCUA.

 

Subscribe


Archives


Categories


Tags

​charity “best “debt “savings 50/30/20 529 about account account” adults advice American Cancer Society American Heart Association American Red Cross animals ATV Auto auto loan back bad credit bank Berowski bike Blog Blog Posts Blogs Blue boat loans borrow Branch breach budget business camper cancer Car car loan Card Challenge charity Check checking checks children Children's Museum Christmas Chuck club College Comets Community compounding consolidation” conventional Corporate Credit Credit Card credit union Dance the Night Away debt deposit destinations dividend donation Dream earnings education Entrepreneurs Equifax equity expenses experienced investing experienced investor FHA Fical Finance Financial financial literacy program financing Firley Moran First First Source Federal Credit Union for Games Genesis gifts giving Go Good Good News Center Goodison-Bick Greiner Group guide Halloween HCCC Health healthy pet loan Heart herkimer holiday holidays home home buying hot tub house House of the Good Shepherd Hug Indoor installation interest invest Investment investments JD Arrante Jessie Julie Keller KIDS Kid's Oneida kitchen remodel kristy learn lien lienhouse Lilli living smarter LMV loan Loans Local long-term savings manage management Marketing Maxam medical Mel member members mentoring Michael Mike missing money money management Money Market Mortgage Mortgages Motorcycle Financing Motorcycle Loan MVCC National Center for Missing & Exploited Children National Credit Union Youth Month NCMEC Neumann New New Hartford new investors nole North Utica of One Oneida online online safety Only order checks Orsomarso overdraft Pamela paperwork Paralympics Parsons patient pay bills payments personal loans pet care pet financing pet surgery Pete pets plan Posts Power Pre-approval presents President/CEO programs protection purchase QR Questions rates recreational loans Red reduce relief renovation Requirements Resolutions resort resorts ride Rome Roth IRAs Run RV Ryan Misencik Safety saving savings savings account savings” Schools Schumer security Sen. service settlement” Sherman Sinnott Education Center ski resort ski trips sled snowboard snowmobile snowmobile trails social media Source South South Utica spending spots SSHS Staff Stevens-Swan Humane Society students Sue Summer system Tammy Cieslak Tanya Taxes teachers Team teens testimonial the The American Cancer Society Tiny's Grill Tips Tom Traditional IRAs travel treatment treats Tricia trip TV Union Unite United United Way Up Utica Utica Children’s Museum Utica Zoo UTV VA vacation vacation financing vacation loan Video Visa volunteer Waggle Walk Walk-A-Thon Way We Wear Wellness Wells Wendy Why wig Wiggle wild Winner winners Winter withdrawal women Women’s Employment & Resource Center Year's York You You’re Young Young Entrepreneurs Academy Young Scholars Program YWCA