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Summary: The difference between a Roth IRA and a regular IRA is an individual can contribute to a Roth IRA, whereas a regular IRA or 401k is contributed by pre-tax payroll deductions. Invest for retirement with both a Roth IRA and a 401k with advice from a registered financial consultant in this free video on finance and investment.
Patrick Munro's affinity for investing and financial matters began more than 20 years ago with business education and service throughout the ranks of the banking, insurance and...read more
"There are two qualified plans that are available to individuals to invest their retirement dollars. Both of them are qualified IRA plans and the other is a Roth IRA. The big difference between the two is that when an individual puts money into a Roth which was originally brought forth by Congressmen. Roth in the eighties, this still stands today. The taxes have already been paid. So when an individual takes the money out of the Roth in the later times in life, he's really taking money out without having to pay taxes. And individual who has an IRA on the other hand, which is usually money that was garnered from a 401k or something at work, of course receives full tax deductibility, but when they take the money out they have to pay taxes at the ordinary rate of income. That's different then a Roth. This is Patrick Munro discussing the differences between the two retirement vehicles known as a Roth and a traditional IRA."