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The key difference lies in taxation. With a traditional IRA, you may deduct contributions from your taxable income, but withdrawals in retirement are taxed as ordinary income. With a Roth IRA, you pay taxes upfront, but withdrawals in retirement are tax-free.
This distinction means the “best” choice depends on your current and future tax situation. If you expect your tax rate to be higher in retirement, a Roth IRA is often more advantageous. If you expect it to be lower, a traditional IRA may save you more money.

A Roth IRA is a retirement savings account that allows you to contribute after-tax dollars, meaning you don’t get a tax deduction upfront. The trade-off is powerful: your money grows tax-free, and qualified withdrawals in retirement are also tax-free. This makes it especially attractive if you expect to be in a higher tax bracket later in life.
Unlike traditional IRAs, Roth IRAs don’t require you to take mandatory withdrawals during your lifetime. That flexibility makes them not only a retirement tool but also a potential estate planning vehicle, since you can leave the account to heirs without being forced to draw it down yourself.

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