Each IRA type has different tax advantages:
Traditional IRA
• Contributions may be tax-deductible, reducing your current taxable income.
• Earnings grow tax-deferred, meaning you don’t pay taxes until withdrawal.
Roth IRA
• Contributions are not tax-deductible, but earnings grow tax-free.
• Qualified distributions are also tax-free
Rollover IRA
• Maintains the tax-deferred status of your retirement assets when moving from another plan.
Disclosure: This is not intended as investment or tax advice.
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