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Traditional or Roth IRA: Which is Right for You?


Traditional IRA

  • Tax-deferred growth
  • Pay taxes only when you make withdrawals
  • Contributions may be tax deductible

Roth IRA

  • Tax-free growth
  • No taxes owed upon retirement withdrawals

Contributing to a 401(k) may not be enough. There is much to consider when choosing an IRA, including income and contribution limits, and IRA qualification rules. Let your financial consultants at UNIFY Investments & Insurance help you decide which IRA is best for you.

The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 1/2 may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.

1 2014 article.