Let’s explore some of the differences between a traditional IRA and a Roth IRA.

With a traditional IRA, your contributions may be tax-deductible and can grow tax-deferred. In retirement, traditional IRA distributions are taxable as ordinary income. With a Roth IRA, your contributions are non-deductible, but have the opportunity to grow tax free. At retirement age, distributions from a Roth IRA are tax free.

Here is a list of some of the primary differences:

	Traditional IRA	Roth IRA
Tax Treatment of Contributions:	Tax-deductible	Non-deductible
Tax Treatment of Distributions:	Taxable as ordinary income	Tax free
Mandatory Distributions:	Mandatory at age 72	No mandatory distributions
Early Withdrawal Penalty:	10% on entire amount	10% only on earnings

Although the above table highlights some of the major differences between a traditional IRA and a Roth IRA, there are a number of other nuances not reflected. Please feel free to contact us to discuss which makes the most sense for your financial situation.