Keeping Up With Your IRA: A Tax Season Checklist

Year-end is an ideal time to evaluate the role that IRAs could play in your retirement and tax management strategies. This checklist offers information to help you make informed decisions and implement a long-term retirement income strategy. Roth IRA or Traditional IRA?The primary difference between a traditional IRA and a Roth IRA is the tax treatment of contributions and distributions (withdrawals). Traditional IRAs may allow a tax deduction based on the amount of a contribution, depending on your income level. Any account earnings compound on a tax-deferred basis, and distributions are taxable at the time of withdrawal at then-current income tax rates. Roth IRAs do not allow a deduction for contributions, but account earnings and qualified withdrawals are tax free. Read More