Ep 146: Roth vs. Traditional IRA

The information I am providing is my opinion and not necessarily that of my firm or this platform.  I am only providing general educational information and not any customized investment recommendations. You should consult with your Financial Advisor, Tax Advisor or Attorney on your specific situation. Nothing shall be construed as Financial, Tax or legal advice or recommendations.   When planning for retirement, understanding the differences between traditional and Roth IRAs is crucial, as each has unique tax advantages and withdrawal rules that could significantly impact your financial future. Kris Flammang and Collin Habig both underscore the importance of these distinctions, with Flammang noting that traditional IRAs offer tax deductions on contributions but require taxable withdrawals and mandatory distributions, while Roth IRAs feature tax-free growth and more flexible withdrawal options. Both experts agree that choosing the right type of IRA depends heavily on individual circumstances, such as one's expected tax bracket in retirement and long-term financial goals. They strongly advocate for personalized advice from financial advisors and tax accountants to ensure that retirement strategies are tailored to meet specific needs and objectives.   Here’s what to expect this episode: Roth IRAs offer tax-free withdrawals in the future, unlike traditional IRAs where withdrawals are taxed as ordinary income. Consideration of current and future tax brackets can impact the decision between traditional and Roth IRAs. Required Minimum Distributions start at age 73 for traditional IRAs, while Roth IRAs provide tax-free growth and withdrawal flexibility. Why is it important to consider current and future tax brackets when choosing between traditional and Roth IRAs?   Connect with Collin Habig https://www.linkedin.com/in/collinhabig/   Connect with Kris Flammang https://www.lpfadvisors.com/   Learn more about your ad choices. Visit megaphone.fm/adchoices