The main difference between a Roth and a regular IRA is the tax treatment. With a regular IRA, the account is pre-tax, which allows all your money to be invested and earn income. Taxes is only taken out at the time of withdrawal.
With a Roth, you pay taxes up front on your contribution. However, there will be no tax at the time of withdrawal. Your earned income from investing the original amount is tax-free.
Anyone can contribute to an IRA until they reach the age of 70 1/2. A Roth IRA, on the other hand, has an income limit restrictions. Your income has to be lower than a certain amount (depending on your filing status) to be eligible to set up a Roth IRA.
The choice between a regular account and Roth depends on your tax situations, income level and age. You can also choose to contribute to both accounts to diversify your tax exposure.
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