Traditional IRA vs. Roth IRA

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Issue:

Miscellaneous

 

Written by:

Mildred G

 

Date added:

February 24, 2015

 

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Grade:

A

 

No of pages / words:

4 / 912

 

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9489 times

 

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Essay content:

When you invest in a Regular IRA, your contributions are tax-deductible. However, when you invest in a Roth IRA, your contributions are made with after-tax dollars and they grow tax free. Each of these options are great ways to begin saving money for retirement, yet each of them has their own advantages and disadvantages...
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The total amount of money that can be contributed to either a Regular IRA or Roth IRA in one year is limited. For 2006 you can contribute up to $4,000 per year or your taxable compensation for the year, whichever is less, if you are under 49 years of age. If you are 50 years of age or older you can contribute up to $5,000 per year or your taxable compensation for the year, whichever is less...
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