Contribution is up to $6,000 ($7000 if age is 50+ years) | Contribution is up to $6,000 ($7000 if age is 50+ years) |
Contribution is AFTER-TAX money | Contribution is BEFORE-TAX money (if qualified) |
No deduction on tax or No tax deferral benefit | If qualified, it is tax deductible now but tax is deferred |
After retirement, withdrawals (contribution & earnings) are tax FREE!! | After retirement (59 1/2yrs), withdrawals (contribution & earnings) are taxed. |
After retirement, withdrawals (contribution & earnings) are tax FREE! | Earnings or gains are taxable! |
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