The tax characteristics are quite different between a Roth IRA and a traditional IRA in terms of initial contributions and withdrawals after retirement.

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With a traditional IRA, contributions are made with pre-tax dollars and withdrawals are taxed as income. With a Roth IRA, contributions are made with after-tax dollars and withdrawals are tax-free in retirement. This difference in tax treatment makes the two types of IRAs very different in terms of their tax characteristics.

The Tax Characteristics Are Quite Different Between a Roth IRA