Many of us have heard of retirement accounts, but have paid no mind. They come off as boring or dull due to the increasing immediate satisfaction of spending. An Individual Retirement Account in itself is not fun, but it is essential in growing your money. The main difference between a Roth IRA and a traditional IRA is the tax bracket. A Roth IRA is allows you to invest after-tax income into a retirement account or in other words, every time you invest the money is entering the account with the taxes on that income being paid for. On the contrary a traditional IRA allows you to insert tax deferred income into a retirement account, which is essentially taxes putting off paying taxes until a later period or once the investment matures.
Most IRA’s require you to maintain your investments until the age of 59 and 1/2. The reason behind this technicality I not for certain, but it can be implied that it is due to the average age of retirement for the common individual.