Question

1. What type of person would benefit from choosing a traditional IRA instead of a Roth IRA? When you are 25 years old, which IRA do you think will make more sense for you? Why?

Answer 1

The main difference between a traditional and Roth IRA is when and how you get a tax break. The primary advantage of tax of a traditional IRA is that the contributions would be tax-deductible in the year they are made; while in the Roth IRA is the withdrawals in retirement would not be taxed

A 25 years old like me who is in lower tax bracket now than would be I at the retirement, thus a Roth IRAs tend to be ideal. It doesn’t get the same upfront tax break in comparison to the traditional IRAs. I won't owe taxes on any account earnings, or on qualified distributions; thus for young people like me Roth contributions provides an edge over traditional contributions