The financial community seldom agrees on anything, but virtually every economist, investment advisor, and accountant in America regards Individual Retirement Arrangements (IRAs) as a great windfall for the middle class. But, with the advent of the Roth IRA program in 1998, investors were presented with a second, equally tantalizing option for their retirement planning needs. Your America's IRA Centers™ advisor can explain the differences between the two types, and help you decide which option is most appropriate for you.

Roth and traditional IRAs have the same objective; both provide an incentive to save, and both provide income after retirement. Their primary difference is that the funds in a traditional IRA grow tax-infested, while the funds in a Roth IRA grow tax-free. That is, contributions you make to a traditional IRA are taxed upon withdrawal (generally, after age 59 ½). Roth IRA funds are only taxable at the time of contribution. Thereafter, Roth interest and capital gains grow tax-free.

One popular rationale for a traditional IRA is that retired people may be in a lower tax bracket, and would therefore pay less tax on withdrawals of IRA funds going out than they wouldon Roth contributions going in. At America's IRA Centers™, we regard this as a myth. Because of pension income, Social Security payments, and/or investment income, many Americans find themselves in an equal or higher bracket after they leave their jobs. Also, keep in mind that present income tax rates are historically low--only the 1930s saw a lower marginal income tax rate than we're experiencing today. Some key differences to consider among these account types:

* Traditional IRA account holders must take Required Minimum Distributions (RMD) each year, beginning at age 70 ½. Roth owners are not subject to RMDs.

*If you choose to, you can continue making contributions to a Roth IRA after age 70 ½; which is the Required Beginning Date for withdrawing funds from a traditional IRA.

*Traditional IRA contributions are tax deductible and grow tax-deferred. Roth Contributions are not deductible, but the earnings grow tax-free.

*Traditional IRAs offer tax-deferred compound interest; Roth IRAs offer tax-free compound interest.

America's IRA Centers™ is the nation's only locally-based financial services provider that specializes in IRAs and retirement distribution planning. Denver's America's IRA Centers™ is located at 7800 E Hampden Avenue, Suite 51, in the Tiffany Plaza shopping center, near the corner of East Hampden Avenue and Tamarac Drive. Call today at 303-779-4727 to arrange an initial consultation regarding Roth and traditional IRAs.

About America's IRA Centers

America's IRA Centers TM offer specialized services in retirement distribution planning, Roth IRA conversions, rollovers from qualified plans, and the emerging arena of Multi-Generational IRAs. America's IRA Centers TM is community-based resources staffed by local professionals with years of experience in financial planning, safe money solutions, and those aspects of the federal code that impact retirement distributions. Learn more about America's IRA Centers TM, at www.americasiracenters.com or call 888-760-4945.