skip to main content

Roth IRA vs. Traditional IRA

Overwhelmed by all the information out there about saving for retirement? Start with the basics: understanding how an Individual Retirement Account (IRA) works and the benefits of a Traditional IRA versus Roth IRA, especially how each plan will affect your income tax. Keep reading to learn more about IRAs.

What Is an IRA?

IRAs icon

An Individual Retirement Account, or IRA, is a special kind of savings account created to encourage individuals to save more money for their retirement. While anyone can generally open an IRA, you must be earning an income to open and contribute to one.

Roth IRA vs. Traditional IRA

Here are the differences between the two main types of IRAs.

Traditional IRA

enjoy retirement

Roth IRA

The Roth IRA has the same limits on yearly contributions and the same deadline for contributions in a tax year as a Traditional IRA, but there are other important differences:

While both plans can help you save for retirement, it’s important to consider which plan will provide you with the most savings for your financial future.

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.

Open an IRA at Synchrony Bank Today

Synchrony Bank offers a range of savings products, including IRA Certificates of Deposit (CDs) and IRA Money Market Accounts, with competitive rates+ and minimum deposit requirements, as well as convenient online access and award-winning customer service.

If you want to save more for retirement, Synchrony Bank can help. Call 1-844-345-5789 to learn more about a Roth IRA versus a Traditional IRA and how you can start saving for retirement today.

———-

Sources:

IRS: https://www.irs.gov/retirement-plans/ira-deduction-limits

+National Average APYs are based on specific product types of top 50 U.S. banks (ranked by total deposits) provided by Informa Research Services, Inc. as of 11/01/2016. CD Rates: Average APYs are based on certificate of deposit accounts of $25,000. Although the information provided by Informa Research Services, Inc. has been obtained from the various institutions, accuracy cannot be guaranteed.


Your browser is out-of-date!

Update your browser to view this website correctly. Update my browser now

×