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What’s the difference between a Traditional, Roth, and “Rollover” IRA?
What’s the difference between a Traditional, Roth, and “Rollover” IRA?
Brianna LaCanfora avatar
Written by Brianna LaCanfora
Updated over 10 months ago

The difference has to do with when you pay taxes on your contributions:

  • A Roth IRA is for after-tax dollars and allows you to make tax-free withdrawals when you retire (after age 59 1/2).

  • A Traditional IRA is for pre-tax or tax-deducted dollars and allows you to pay taxes later when you withdraw (usually when you retire after age 59 1/2).

  • A Rollover IRA is a special type of Traditional IRA for rollovers. Rollover funds in this type of IRA can sometimes be rolled back into an employer-sponsored 401(k), if the plan allows for it. You can still contribute to Rollover IRAs the same way you would to a Traditional IRA.

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