ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is the difference between a Roth IRA and a Traditional IRA?
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A Roth IRA is tax free, a Traditional IRA is tax deductible
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A Traditional IRA is managed by the government, a Roth IRA is managed by a private company
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A Roth IRA is only available to military and public service employees
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There is no difference, just the name
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Explanation:
Detailed explanation-1: -With a Roth IRA, you contribute after-tax dollars, your money grows tax-free, and you can generally make tax-and penalty-free withdrawals after age 59½. With a Traditional IRA, you contribute pre-or after-tax dollars, your money grows tax-deferred, and withdrawals are taxed as current income after age 59½.
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