Here are a few factors to consider when you choose a retirement savings plan. Roth and traditional IRAs differ when paying taxes on contributions and distributions in retirement. While both are tax advantaged accounts, your choice depends on when you want to pay taxes, now with a Roth IRA or in retirement for a traditional IRA. In addition, you must have earned income in wages or salaries to contribute to either. While you must take the required minimum distributions from a traditional IRA at age 73 in 2023, Roth IRAs do not require RMDs during the owner’s lifetime. This makes a Roth IRA a wealth-transfer vehicle because you can pass the entire account and its tax benefits onto your heirs. Call us if you would like to discuss funding either of these types of accounts as we have some ideas that may benefit you. We’re always here to help.
