Both traditional IRAs and Roth IRAs are tax-exempt accounts.

Name: Both traditional IRAs and Roth IRAs are tax-exempt accounts.
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Both traditional IRAs and Roth IRAs offer tax benefits. With traditional IRAs, contributions may be tax-deductible and earnings grow tax-deferred until withdrawal, while with Roth IRAs, contributions are made with after-tax dollars and earnings grow tax-free. Both types of accounts can provide a tax advantage, but they operate in different ways.

Both Traditional IRAs and Roth IRAs Are Tax-Exempt Accounts