Should I Open A Roth Or A Traditional IRA?
Some of the factors to consider when deciding whether to open a Roth or a Traditional IRA are the following, each of which are discussed in other sections of this article:
- Current and future tax brackets.
- How much can you afford to put aside?
- When will you need the money?
Before moving forward, it's important to have an understanding of the various types of IRAs, eligibility requirements and the rules about contributions, the rules for administering your IRAs and for withdrawing or distributing funds.
NOTE: While there are low limits on the amount you can contribute to a Roth IRA (such as $5,000 and $6,000), individuals with more than $100,000 in annual income and couples with more than $176,000 in annual income can roll over their money from traditional IRAs into Roth accounts.
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