In more detail
A traditional IRA may give a tax deduction now and taxes withdrawals later; a Roth IRA is the reverse. Contribution limits, income rules and the age at which withdrawals are required are set by law, so check current figures.
Glossary
Finance
IRA
An IRA (individual retirement account) is a US personal retirement account with tax advantages that you open yourself, outside any employer plan.
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Glossary
Roth IRA
A Roth IRA is a US retirement account funded with after-tax money, whose growth and qualified withdrawals are tax-free.
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Glossary
401(k)
A 401(k) is a US employer-sponsored retirement account to which you contribute from your paycheck, often with an employer match.
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Glossary
Required minimum distribution (RMD)
A required minimum distribution is the minimum yearly amount that must be withdrawn from most tax-deferred retirement accounts once the.