Stash Learn

Roth v. Traditional: What type of Retire account is right for me?

When you’re registering process for a Stash Retire account, we will ask you several questions to help you figure out which account type is best for you.

But how do I know I’m making the right choice?

Since everyone’s tax situation is unique, the easiest way to make choosing an account type easier is probably to speak with a tax professional (like an accountant) to figure out which one will give you the biggest, best benefits.

Ok, what should I know about each kind of account before talking to a tax professional?

A Bit About Roth IRAs

With a Stash Retire Roth IRA, you are contributing post-tax money. This means you’ve already paid taxes on the money you’re contributing.

The benefit here is that Roth IRAs grow tax-free and you won’t pay taxes on your money when you take it out at retirement.

Read more about Roth IRAs on Stash Learn.

A Bit About Traditional IRAs

With a Stash Retire Traditional IRA, you are contributing pre-tax dollars. This means you have not yet paid taxes on the money you’re contributing.

This can make you eligible for tax deductions now, however, you will be taxed on the money when you take it out of your account during retirement.

Read more about Traditional IRAs on Stash Learn.

Stash does not provide legal or tax advice. If you have questions regarding your unique tax and legal situation, please consult a tax or legal professional.

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