There is still time to make individual retirement account (IRA) contributions for 2024. Sarah Brenner, director of retirement education at Ed Slott & Company, joins Brad Smith on Wealth to break down what taxpayers need to know before the April 15th contribution deadline.
Brenner explains that contributions can be made to either a traditional IRA or a Roth IRA. While only the former offers upfront tax breaks, the latter provides tax-free growth.
"With a Roth IRA, you don't get a tax deduction," she explains. "So sometimes people think, 'Well, why should I make a Roth contribution if I'm not getting an immediate tax break?' The benefit is on the other end; with a Roth IRA, the benefit is going to be tax-free earnings and tax-free distributions."
Brenner also describes the details surrounding income limits, distribution limits, and employer-provided IRAs.
To watch more expert insights and analysis on the latest market action, check out more Wealth here.
This post was written by Josh Lynch