Module 2 Overview
Named for U.S. Senator William Roth, former chairman of the Senate Finance Committee, Roth IRAs differ fundamentally from traditional IRAs. Any contribution to a Roth IRA is not tax-deductible. The earnings in the account grow tax-deferred. With a few restrictions, all distributions from the account are tax-free.
In a traditional IRA, the tax benefits occur when deductible contributions are made and as earnings grow tax-deferred. In a Roth IRA, the tax benefits occur as the account grows and when funds are eventually withdrawn. Due to the delayed nature of the tax advantages, Roth IRAs have been called “backloaded” IRAs.
This module covers the following topics. Click any topic to begin, or use the Next button at the bottom of each page to proceed in order.