Pros And Cons Of A Traditional IRA And Roth IRA

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IRA & Roth IRA The following essay will discuss and explain what constitutes a traditional IRA and a Roth IRA. The essay will discuss the pros/cons of a traditional IRA, pros/cons of a Roth IRA, and summarize similarities and differences between the two types. A traditional Individual Retirement Account (IRA) “is a way to save for retirement that gives you a tax advantage…” (www.irs.gov, 2016). It is a retirement account [401(k)] that an investor is able to make contributions to, similar to a savings and checking account. Once money is added into the IRA, an individual can invest the funds into different investment vehicles; such as: stocks, bonds, mutual funds, etc. With regards to tax advantages, the individual who opened the account will

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