The tax characteristics of a Roth IRA and a traditional IRA differ in terms of initial contributions and withdrawals after retirement.

Question

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In a Roth IRA, contributions are made with after-tax dollars and withdrawals during retirement are generally tax-free. In contrast, contributions to a traditional IRA may be tax-deductible, but withdrawals during retirement are taxed as ordinary income.

The Tax Characteristics of a Roth IRA and a Traditional