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A Roth IRA has some clear advantages over the regular IRA (which we will discuss more below). However, there also some disadvantages. So it's important to compare both accounts carefully before making a decision. Deciding between a Roth IRA and a Traditional IRA really comes down to knowing the details of both accounts, including how they work and their advantages and disadvantages.

You can contribute to a Traditional IRA no matter your income level, and the contribution limits are not income-dependent. What this means is that those covered by an employer's retirement plan (e.g. 401k) and those who aren't (e.g. freelancers) can make the same contribution to a Traditional IRA. But there are income limitations that may prevent you from deducting contributions to a Roth IRA.

The main difference between the two accounts is in when taxes are paid. With a Roth IRA, withdrawals in retirement are tax-free. However with a traditional IRA, withdrawals in retirement are taxed as income.

The main advantage of the Roth IRA is that earnings grow tax-free and you do not have to pay taxes when you withdraw your funds. With a traditional IRA, withdrawals in retirement are taxed as income. Also, those who earn less than $122,000 (married) or $72,000 (single), can deduct contributions to a traditional IRA.

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