Roth vs. Traditional IRA

The main difference is when you pay income taxes on the money you put in the plans. With a traditional IRA, you pay the taxes on the back end – that is, when you withdraw the money in retirement. But, in some cases, you may escape taxes on the front end – when you put the money into the account.

With a Roth IRA, it’s the exact opposite. You pay the taxes on the front end, but there are no taxes on the back end.

And remember, in both traditional and Roth IRAs, your money grows tax free while it’s in the account.

There are other differences too. While almost anyone with earned income can contribute to a traditional IRA, there areincome limits for contributing to a Roth IRA. So not everyone can take advantage of them.

Roth IRAs are more flexible if you need to withdraw some of the money early.

With a Roth IRA, you can leave the money in for as long as you want, letting it grow and grow as you get older and older. With a traditional IRA, by contrast, you must start withdrawing the money by the time you reach age 70½.

You are Leaving Minnequa Works' Website

Minnequa Works provides links to web sites of other organizations in order to provide visitors with certain information. A link does not constitute an endorsement of content, viewpoint, policies, products or services of that web site. Once you link to another web site not maintained by Minnequa Works, you are subject to the terms and conditions of that web site, including but not limited to its privacy policy.

You will be redirected to

Click the link above to continue or CANCEL