You have options! As we discussed in the Retirement 101 article, there are many different retirement accounts to choose from when you are planning for the future. You also probably noticed that I said "available in traditional and roth". Our next step is to define what those are. Let's explore the similarities and differences.
First, let's cover what's the same between a Roth and a Traditional retirement account.
There are a few key differences between the two options.
*Roth contributions (but not earnings) can be withdrawn penalty and tax free at any time before age 59 1/2 if your account is older than 5 years.
Now that you know the similarities and differences between Roth/Traditional accounts and the variety of retirement accounts that are available, you should be able to make an informed decision. We will continue this retirement talk as there are still plenty of topics left to cover!