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What is the difference between the IRA and the Roth IRA?
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The main difference between an Individual Retirement Account (IRA) and a Roth IRA is the way they are taxed. With a traditional IRA, contributions are made with pre-tax dollars and withdrawals are taxed when they are taken out in retirement. With a Roth IRA, contributions are made with after-tax dollars and withdrawals are tax free. Additionally, Roth IRAs have more flexibility in terms of distributions than Traditional IRAs.