Join The Dream Team

Traditional IRA

Tax-deferred growth

A Traditional IRA allows individuals to contribute money that may be tax-deductible, depending on income and eligibility requirements. Investments grow tax-deferred — you generally do not pay taxes on earnings until withdrawals are taken in retirement.

Potential Benefits
Possible tax deduction on contributions
Tax-deferred growth
Wide range of investment options
May help reduce current taxable income
Things to Consider
• Withdrawals in retirement are generally taxable as ordinary income.
• Required Minimum Distributions (RMDs) generally begin at a specified age under IRS rules.
• Early withdrawals may be subject to taxes and penalties.
A Traditional IRA may be attractive for individuals who expect to be in a lower tax bracket during retirement than they are today.

Roth IRA

Tax-free potential

A Roth IRA is funded with after-tax dollars, so contributions are generally not tax-deductible. However, qualified withdrawals in retirement — including earnings — may be completely tax-free if IRS requirements are met.

Potential Benefits
Tax-free qualified withdrawals
Tax-free growth potential
No Required Minimum Distributions (RMDs) during the owner's lifetime
Valuable legacy planning opportunities
Things to Consider
• Contributions are not tax-deductible.
• Income limitations may affect eligibility to contribute directly.
• Certain rules must be met to receive tax-free distributions.
A Roth IRA may be attractive for individuals who expect their tax rate to be higher in retirement or who value tax-free income in the future.

Traditional IRA vs. Roth IRA

A side-by-side look at how the two accounts compare.

Feature Traditional IRA Roth IRA
Contributions May be tax-deductible After-tax contributions
Growth Tax-deferred Tax-free potential
Retirement Withdrawals Generally taxable Generally tax-free if qualified
RMDs Required under IRS rules No lifetime RMDs for original owner
Current Tax Benefit Potential deduction today Potential tax-free income later

Which IRA Is Right for You?

The best choice depends on your personal circumstances — including your current income, tax situation, retirement goals, and long-term financial strategy.

Some prefer the immediate tax advantages of a Traditional IRA
Others value the future tax-free income potential of a Roth IRA

At Sagun Financials, we help individuals understand their retirement savings options and determine which strategies may best align with their long-term financial goals.

Start Building Your Retirement Strategy

Whether a Traditional IRA, a Roth IRA, or a combination fits best, our licensed advisors can help you weigh the options and align your savings with your long-term goals.

Schedule A Consultation Contact Us Today