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PERSONAL FINANCE · Lesson 3

Roth vs Traditional, decided in five minutes

Daily Desk · Editorial5 min read
The Roth vs Traditional debate isn't really about investing. It's a bet on your future tax rate — and whether you'd rather pay the IRS now or later.

Both IRAs let you save for retirement with tax advantages. The difference is when the IRS taxes you. Traditional: you skip taxes today, pay them on the way out. Roth: you pay taxes today, withdraw tax-free in retirement.

— Educational, not financial advice.