What Type of Retirement Account(s) Should I Have?

The long-term goal for most people is to have a Roth IRA/Roth 401(k) and a Traditional IRA/401(k). So that when the time comes to start withdrawing money from your retirement accounts for income, you have options on which account to take money from and your tax situation at that time. You do not pay taxes on the Traditional IRA when you put the money in, but you do pay taxes on it when you withdraw it. You pay taxes on the dollars you put into the Roth IRA, but you do not pay taxes on it when you withdraw it.

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