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Publication Date: June 2010
Publisher: National Center for Policy Analysis (U.S.)
Author(s): Pamela Villarreal
Research Area: Economics
Keywords: roth ira; roth; ira
Type: Report
Coverage: United States
Abstract:
Millions of Americans are saving for retirement in 401(k)s and Individual Retirement Accounts (IRAs). These accounts allow people to invest pretax dollars, but require them to pay taxes on their deposits and accumulated earnings at the time of withdrawal. By contrast, a Roth account allows people to deposit after-tax dollars, but withdraw the accumulated balances tax-free.