The difference between a Roth IRA and a traditional IRA is
A) A Roth IRA contribution is made after you pay tax on the money you deposit
B) A traditional IRA contribution is made after you pay tax on the money you deposit
C) Roth IRA contributions are made with pretax money
D) With a traditional IRA you never have to pay tax

Question

Quizplus · Accepted Answer

A Roth IRA contribution is made after you pay tax on the money you deposit, meaning that it grows tax-free and you won't owe any taxes when you withdraw it in retirement. This is often a better choice for those who expect to be in a higher tax bracket during retirement than they are currently.

The Difference Between a Roth IRA and a Traditional IRA