3 Ways You Can Make Your IRA Work Better for You
Regular IRA contributions aren’t enough to ensure a secure future. You need to put your money to work for you. That might sound complicated to those who aren’t experts at investing, but there are a few simple things anyone can do to get more out of their IRA so they can have more money for retirement. Here’s a closer look at three of them.
When you open an IRA, you must decide whether you’d like it to be traditional or Roth. Traditional IRAs use pre-tax dollars. That means your contributions reduce your taxable income for the year, but in exchange, you must pay income tax on your withdrawals. Roth IRAs use after-tax dollars, so contributions to these accounts won’t lower your tax bill this year, but then you won’t owe taxes on your distributions later.
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