IRAs

This retirement account allows you to defer taxes on the earnings of your contributions until they are withdrawn. Additionally, certain contributions are tax deductible in the tax year for which you make them.

The Roth IRA allows only nondeductible contributions and features tax-free withdrawals for certain distribution reasons after a 5-year holding period. Since Roth IRA contributions are nondeductible and taxed in a higher tax bracket when you retire, you may benefit more from a Roth IRA than from a traditional IRA.