Important differences exist between the Traditional and Roth versions of both the employer-sponsored 401(k) plans and Individual Retirement Accounts (IRA).
A Roth IRA is an individual retirement account which varies in a number of ways from the Traditional IRA. The principle difference is two-fold.
A Traditional IRA is one of several types of IRA’s, or Individual Retirement Accounts. The financial planning process will reveal if and when it is advantageous to use a Traditional IRA.