There are two basic types of IRAs (Individual Retirement Accounts) for individuals looking to set aside money for retirement. To determine whether a Traditional or Roth IRA will work best for you, compare the differences between the two.
A side-by-side comparison will help you see which features benefit you the most.
Traditional IRAs and Roth IRAs, the two most common types of Individual Retirement Accounts, offer tax-advantaged methods to save for retirement. The main difference between these IRAs is when income is taxable to you.
When choosing an IRA, consider these key factors:
You may contribute to either IRA from January 1 of any calendar year up to the tax filing deadline in the following calendar year, which is typically April 15.
Your decision to choose one IRA over the other may depend on when you will be in a higher tax bracket. This is important to consider when making a contribution or distribution from your account.
This side-by-side IRA comparison created by the IRS provides a brief summary of current features of Traditional and Roth IRAs.
Synchrony Bank does not provide tax advice so be sure to contact your tax advisor or financial consultant before opening or contributing to an IRA.
To see how your money can grow in an IRA, visit Synchrony Bank’s website or call 1-844-345-5789.
Synchrony Bank offers a wide range of savings products, award-winning customer service, and FDIC insurance up to $250,000 per depositor for each ownership category.
*ANNUAL PERCENTAGE YIELD (APY): All APYs are accurate as of .
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For Money Market and High Yield Savings Accounts, the rate may change after the account is opened. For CDs, a minimum of $2,000 is required to open a CD and must be deposited in a single transaction. A penalty may be imposed for early withdrawals. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. The APY shown for CDs and IRA CDs is for a 60-month CD with a balance of at least $25,000. Click here for all CD rates and terms offered.