Question

What would be some reasonings for the investor to choose a tradtional IRA instead Roth IRA?

Answer 1

Some reasonings for the investor to choose a traditional IRA instead Roth IRA are as follows-

1.Traditional IRA offers a tax break while Roth IRA doesn't offer with s tax break.

2. The requirement norms for contribution into traditional IRA is simple in comparison to that of Roth IRA as one can contribute without much requirements. One requirement is that one should have made money from job or other works While Roth IRA has income limits.

3.One who is opting for traditional IRA can defer their tax liability for long and wait to pay taxes into lower bracket When they get old so it can significantly decrease the tax payable.