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What are the differences between a Roth and a conventional IRA?

April 26, 2017conventional differences IRA Roth

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What are the differences between a Roth and a conventional IRA?

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A traditional IRA lets you deduct contributions in the year you make them, and the distributions are included as income on your return when you withdraw from the IRA after reaching age 59½. A Roth IRA does not let you deduct the contributions, but you also do not report the distributions as income, no matter how much the Roth account has appreciated. With a Roth, you can exclude the income earned in the account from being taxed.