This article on MSN.com discusses which IRA is better, a traditional IRA or a Roth IRA. There is some basic information that is good to know, like what the differences are between a traditional IRA and a Roth IRA.
With a traditional IRA
you receive a tax break in the tax year in which you make a contribution, and you pay no taxes on the dividends, interest and capital gains that accumulate. You only pay taxes once you start to take distributions — in retirement.
With a Roth IRA
you get no tax break in the year of the contribution, but you are able to remove the funds tax-free in retirement.
So, which one should you choose?
It doesn’t matter! Because it’s your money, and they want it NOW!
This plan to
confiscateconvert your 401K and IRA accounts to Government Retirement Accounts has been in the works since at least 2007. The government is going to claim that people aren’t saving enough for retirement, so the feds will ‘help you out’ by taking control of YOUR retirement funds. The Feds will take control of the money in the account and ‘invest’ it in government debt (Treasury bonds, T-bills, etc.)
This is just another cash grab by government. The Feds will set up GRAs and
tax youallow you to contribute 5% of your income to your account. When you die, half of the balance in the account will be taxed awayleft to Uncle Sam as a reward for letting him help you.