As a representative for the Principal Financial Group, Shelly Grant helps individuals and businesses with investment and retirement planning. Shelly Grant holds an MBA from St. Thomas University, and began working at Principal’s Miramar, Florida, office in 2013. Among its other financial services, Principal Financial Group helps individuals understand the retirement options available to them.
When planning for retirement, many people have questions about the difference between traditional and Roth IRAs. The primary difference between the two retirement accounts is that the traditional IRA allows users to deduct contributions from their taxable income and money deposited into the account is not taxed. However, money is taxed when it is withdrawn. On the other hand, a Roth IRA contribution is not tax deductible, but when the money is withdrawn, it is not taxed. This means that individuals who expect to be in a higher tax bracket when they retire may wish to consider a Roth IRA, while those approaching retirement, or expecting to be in a lower tax bracket may opt for a traditional retirement account.