Retirement Accounts – Roth IRAs and Traditional IRAs
Besides procrastination, income taxes are the biggest threat to your goal of building a retirement savings nest egg, and based on the growth of the federal deficit, income taxes will have to increase. If you don’t account for income taxes, you could lose as much as 40 percent of your retirement savings. You deserve to enjoy every dollar you’ve so painstakingly sacrificed to save.
Traditional individual retirement accounts (IRAs) provide tax incentives because your contributions are tax deductible. Roth IRAs provide tax-free distributions when you begin taking withdrawals during retirement.