Which IRA is best to invest in, Roth IRA or Traditional IRA?
It depends on your goals and needs. One is taxed at withdraw, one isn’t and both have different tax benefits. I would recommend asking your accountant. Happy saving!
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Agree with Nats1488, not a simple answer. I did a standard IRA because the Roth was not in existence at the time, but I think thru the years I would have made the same choice. My income was strong at that time so needed the tax break then. I’m just this year starting the RMDs of a standard IRA and I’m in a much lower tax bracket in retirement than I was while working. So, tho I’ll pay taxes they will be less than if I’d had the choice of a Roth available. Both have pros and cons.
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Great question, Rosalina! The main difference boils down to taxes — specifically, when you want to pay them, because we know Uncle Sam’s gonna get his cut. 
If you want to lower your tax bill now, consider a traditional IRA because you can deduct your contributions now, but you’ll pay taxes when you withdraw the money. With a Roth IRA, you contribute money you’ve already paid taxes on, hence, no tax break now — but the money is all yours tax-free in retirement!
Another advantage of a Roth IRA is that you can access the money you contributed at any time, though you’ll typically have to wait until you’re 59 ½ to withdraw your earnings — otherwise, you’ll pay taxes and a 10% penalty. For a traditional IRA, under most circumstances you’ll pay the taxes and 10% penalty if you withdraw your earnings or contributions before age 59 1/2.
A final note: You can’t contribute to a Roth IRA if your income is above a certain amount. In 2019, the income limits are $137,000 for single filers and $203,000 for married filing jointly. There are no income limits for contributing to a traditional IRA.
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@nats1488 @robin.hartill @mintjulep
Thank you very much!! I understand the difference now! Because of my current income, I believe going with a traditional IRA would be best, at this time. I no longer have dependents, so the tax break would be great!! Thank you!!
