If you’re still in limbo with a 401(k) or other type of rollover, never fear—we can help you. One the first decisions to make is whether to use a Roth or Traditional account. Sarah Michaelson, Betterment’s manager of customer success, breaks down the ins and outs of each kind of IRA.
With Traditional IRAs, you can get deductions now but with Roth IRAs, you get tax free withdrawals later. Thus if you want to minimize your taxes, the best choice for you may depend on your current income tax rate, your future projected income tax rate and possibly other factors. Either way, generally contributing to either IRA is usually beneficial for you. If you already have an IRA, check out out blog post on how to get more from your account.
To get more specific information about your personal situation, consider talking to a qualified tax professional or check out IRS Publication 590
Our free 5‑minute investment review helps you get a sense of what you're doing well and where you could improve.
Start your review
With Betterment, you get personalized advice, low and transparent fees, and unlimited access to licensed experts.
Betterment is the largest independent online financial advisor with more than $10 billion in assets under management. The service is designed to help increase customers’ long-term returns and lower taxes for retirement planning, building wealth, and other financial goals. Betterment takes advanced investment strategies and uses technology to deliver them to more than 270,000 customers across its three business lines: direct-to-consumer, Betterment for Advisors, and Betterment for Business. Learn more.