#7 II Retirement Accounts

Last time on part one of episode 7 I covered one of the two forms of Tax-advantaged accounts. I went over Tax-deferred accounts in which the taxes on income are “deferred” to a later date. This is delaying any taxes that are due on investment gains until your funds are eventually withdrawn. I explained two popular types of Tax-deferred accounts: Traditional 401 (k) and Traditional IRA. In this week's part 2 of episode 7 we’ll be going over the 2nd form of tax-advantaged accounts known as Tax-Exempt Accounts. I’ll be going over the Roth IRA and Roth Traditional 401 (k).