What are the differences between a traditional IRA and ROTH IRA?
Robert Seltzer: A traditional IRA allows you to receive a tax deduction and the account goes tax deferred and you don’t pay taxes on it until you take a distribution. A Roth IRA is tax free. If you have a long time before you’re taking the money out, and you can afford to forego the current deduction you’re going to have a much greater tax savings [with a Roth IRA]. MS: What type of IRA are taxpayers eligible for? RS: It depends on your income and whether you’re covered by a plan at work. If you have a 401(k) there would be an income ceiling. If not, there is no income ceiling. MS: What is an income limit based on? RS: The amount is based on the adjusted gross income. For a traditional IRA, [if] you’re not covered by a pension plan, then there is no income limit. [A 401(k) is considered a pension plan.] If so, there is $53,000 limit for individuals and $85,000 to $100,000 for married couples. To invest in a Roth IRA, the income is $101,000 to $116,000 for an individual. For married peo
