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.
“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.”
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