One important difference between a Roth IRA and a traditional IRA is that

Question

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Distributions from a Roth IRA are tax-free, meaning that the money withdrawn (including any earnings) is not subject to income tax. This is a significant advantage compared to traditional IRAs, where distributions are taxed as ordinary income upon withdrawal. The other options are incorrect as accumulations in traditional IRAs may be taxed upon withdrawal, contributions to Roth IRAs are not tax-deductible, and contributions to traditional IRAs may come from pre-tax earnings.

One Important Difference Between a Roth IRA and a Traditional