Truth 34 Traditional IRA, Roth IRA, 401(k), or Roth 401(k)
We all know that we should be saving as much as we can for retirement. Traditional IRAs, Roth IRAs, 401(k)s, and Roth 401(k)s all have distinct advantages as well as some disadvantages. Some people even think that if they have enough money to do so, they should hedge their bets and put money into all four types of retirement savings vehicles available to them.
But if you had to make a choice, what should it be?
Traditional IRA vs. Roth IRA
Much of the benefit of the Roth IRA as compared to the traditional IRA is that when you take money out of your Roth IRA at retirement, you are not required to pay income taxes on that money. If tax rates increase, which ...