Many people have strong opinions on which is better: a Traditional IRA or a Roth IRA. Really, it's a matter of choice that will depend on a few factors, including personal preference and your financial situation. But the folks at Charles Schwab put together a helpful infographic to help guide your decision.
Essentially, the difference between a Traditional and Roth IRA comes down to how the accounts are taxed. Contributions to a traditional IRA are tax-deductible, whereas contributions to a Roth are not. But when it comes time to withdraw your money, distributions from a traditional IRA are taxed. Withdrawn contributions from a Roth are not. This is a very basic explanation, however. The Roth IRA website offers a more detailed, handy comparison.
With these differences in mind, the below flowchart can be useful in making your decision. Of course, any kind of chart like this is simply meant to be a guide. While the questions might serve as helpful suggestions, you should ultimately choose the account that you feel is best for your financial goals.
Infographic – Is a Roth IRA Right for You? | Charles Schwab
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