Charles Sizemore, who manages several portfolios on the Covestor platform including Dividend Growth Portfolio, recently penned a story for InvestorPlace.com comparing two types of individual retirement accounts (IRAs).
Specifically, he discussed the pros and cons of traditional IRAs vs. Roth IRAs.
Sizemore wrote:
“With a traditional IRA, you receive a tax break in the tax year in which you make a contribution, and you pay no taxes on the dividends, interest and capital gains that accumulate. You only pay taxes once you start to take distributions — in retirement. With a Roth IRA, you get no tax break in the year of the contribution, but you are able to remove the funds tax-free in retirement.”
To read more of Sizemore’s analysis of IRAs, read the full article at InvestorPlace.com.
Photo Credit: StockMonkeys.com
