1 CHAPTER 3 STUDENT ACTIVITY SHEET Traditional and Roth IRA Use the space below to compare and contrast a traditional IRA to a Roth IRA. What characteristics do they share and what is different about them? Characteristics: Similar Different
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1
CHAPTER 3 STUDENT ACTIVITY SHEET
Traditional and Roth IRAUse the space below to compare and contrast a traditional IRA to a Roth IRA. What characteristics do they share and what is different about them?
Characteristics:
Similar Different
2
CHAPTER 3 STUDENT ACTIVITY SHEET
Traditional and Roth IRAUse the space below to compare and contrast a traditional IRA to a Roth IRA. What characteristics do they share and what is different about them?
ANSWER KEY
Similar Different
• 401﴾k﴿ funded through employer and may involve company matches.• Roth IRA grows tax free• Roth IRA offers more flexibility and taxfree saving.There is a penaltyfree withdrawal if:
• 59 and a half years old or older • Death/disability • First time house ﴾$10,000 max﴿
• Roth IRA–nonincome spouse can contribute up to $5,000 ﴾2010﴿. • Best to rollover your 401﴾k﴿ when you leave a company. With a Roth IRA, you don’t have to worry about it.
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