Ask a New Question
Menu

After learning the difference between Roth and traditional retirement plans—IRA, 401(k), and 403(b)—which type would you prefer? Why?

ramsey classroom

1 answer

Personally, I would prefer a Roth retirement plan because it allows for tax-free withdrawals in retirement. This means that I can contribute after-tax money now and enjoy tax-free growth on my investments over time. Additionally, I can withdraw my earnings tax-free in retirement, which can provide more flexibility and potentially save me money in the long run. Also, I prefer the idea of paying taxes on my contributions now, rather than being taxed on withdrawals in retirement when I may be in a higher tax bracket. Overall, the Roth retirement plan aligns more with my financial goals and preferences.
Similar Questions
  1. What advantages does a roth IRA have over the traditional IRA?A. With a roth you take care of taxes ahead of time and end up
    1. answers icon 0 answers
  2. What type of retirement investment is sponsored by employers?- S&P 500 mutual fund - traditional IRA - 401(k) plan - roth ira
    1. answers icon 1 answer
  3. Fill in the blank: IRA contributions are generally deductible.Roth, both traditional and Roth, neither traditional nor Roth,
    1. answers icon 1 answer
    1. answers icon 1 answer
more similar questions