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A Roth IRA and a traditional IRA (individual retirement account) offer valuable retirement-planning benefits, but with different structures, income limits and pros and cons.
“Continue contributing to a Roth or traditional IRA, but remember the contribution limits are relatively low compared to a 401(k),” Meyer said. (The maximum contribution is $7,000 for 2024).
Traditional IRAs and Roth IRAs are both great ways to boost your retirement savings. Learn about the differences between the two retirement accounts.
You can also choose between two IRA options: a traditional account or a Roth account. In 2020, you can contribute up to $6,000 to an IRA or, if you're age 50 or older, up to $7,000.
$7,000/yr for age 49 or below; $8,000/yr for age 50 or above in 2025; limits are total for traditional IRA and Roth IRA contributions combined. Cannot contribute more than annual earned income. For direct contributions to Roth IRAs, contribution limit is reduced in a "phase-out" range, for single MAGI > $146,000 and joint MAGI > $236,000 [ 6 ...
Roth IRA vs. Traditional IRA: Which One Is Right for You? Choosing between a Roth IRA and a Traditional IRA depends on your overall tax strategy, retirement plan, and financial needs. If you’re ...
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