41
QuizMultiple Choice

N/A — Exam

Question 41 • Personal Finance

What is a key difference between Traditional and Roth IRAs?

Answer
A
both tax-free
B
both require loans
C
both taxed the same
D
timing of taxes differs

Explanation

The key difference is when taxes are paid. Traditional IRA contributions may be tax-deductible, but withdrawals are generally taxed; Roth IRA contributions are made with after-tax money, and qualified withdrawals are generally tax-free. So the timing of taxes differs.

AI-written and checked against the verified answer.

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