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Let me try to simplify this for all the GRLS!
Traditional IRAs:
- You contribute with pre-taxed dollars
- You are taxed on ALL your money (contributions and earnings) when you withdraw your money at age 59 1/2
- If you withdraw before age 59 1/2, there will be a 10% penalty fee
- You are required to withdraw all funds by age 72
Roth IRAs:
- You contribute with after-tax dollars
- You are NOT taxed on ALL your money (contributions and earnings) when you withdraw your money at age 59 1/2
- If you withdraw before age 59 1/2, there will be a 10% penalty fee ONLY on the earnings
- You are NOT required to withdraw all funds by age 72
Tag a woman in your life who needs these easy finance tips to live better 🏷️
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