When it comes to retirement planning, many people begin that journey with an IRA. Whether it comes through an employer or done on its own, the traditional IRA has been a popular route for many people to start saving long-term.
Over recent years, however, the Roth has been garnering more attention. That’s even more true in 2020 with the SECURE Act being passed into law.
So what’s the difference between the two and why would you choose one over the other? Well, the answer always starts with ‘it depends’ because every person’s situation is going to be different, but we’ll answer that question on this episode of The Retirement Huddle podcast.
We’ll lean on Mark Howard’s experience to explain the key details for each account. Find out why one question about taxes will go a long way towards helping you decide and some of the considerations you need to make for choosing one or the other. Plus, Mark will give his opinion on whether the Roth will continue to be a popular planning tool for the clients he works with.
Thanks for listening to this episode. We’ll be back for another show every other Thursday.
[0:50] – What’s the difference between a traditional IRA and a Roth?
[3:30] – Why have people used the traditional IRA for so many years?
[4:29] – Why is the Roth so powerful for most savers?
[5:51] – Does Mark believe the Roth will be a popular tool as we move forward?
[7:09] – Are there certain people that would be better fit for a Roth or traditional?