Both traditional and Roth IRAs possess the advantage of tax-free accumulation of income within the plan.

Question

Quizplus · Accepted Answer

Both traditional and Roth IRAs allow for tax-free accumulation of income within the plan. However, the main difference between the two is the timing of the tax benefit. Traditional IRAs provide a tax deduction on contributions made in the current tax year, while Roth IRA contributions are made with after-tax income but qualified withdrawals in retirement are tax-free.

Both Traditional and Roth IRAs Possess the Advantage of Tax-Free