Before diving into the allocation strategy, let’s briefly revisit the fundamental differences between Roth and traditional IRAs. Roth IRA: Contributions are made with after-tax dollars, but qualified withdrawals, including earnings, are tax-free. Traditional IRA: Contributions are made with pre-tax dollars, providing an immediate tax deduction. Withdrawals, however, are subject to income tax. Assessing current and
What to put in Roth vs. traditional IRAs: It can make big differences originally appeared in KevinMD.com.
