Traditional or Roth IRA for a part-time worker?

by Kathy
(Bel Air)

I work part-time and earn just $8,000 a year. I don’t have any retirement account yet. In fact, I don’t like to invest money and take risks. However, my friends recommend getting IRAs. I don’t really know if they are good for me or not. If I choose one, which one should I get, traditional or Roth? 21 years old.

Rating

long term investment
by: Laura Ramirez

If you have low income, the tax advantage of a traditional IRA becomes less. If your income tax rate is expected to be higher than your income tax rate now, then you can enjoy tax-free withdrawal of a Roth IRA at retirement age.
Also, you can take your contribution amount out of a Roth IRA at anytime for your urgent use. Even though accessing the retirement accounts is not good idea, a Roth IRA gives young investor like you flexibility for unexpected future events.
Read retirement solutions for more information.

Traditional or Roth IRA for a part-time worker?

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Traditional or Roth IRA for a part-time worker?