Both Roth IRA and Traditional IRA have their own advantages and disadvantages. The best choice depends on your current and future financial situation, tax bracket, and goals. Yes, you can have both at the same time. However, your total contributions to both accounts cannot exceed the annual contribution limit set by the IRS each year.

Here are some of the key differences between Roth IRA and Traditional IRA:

1. Tax Treatment: Traditional IRA contributions are tax-deductible in the year they are made, while Roth IRA contributions are made with after-tax dollars. 
2. Required Minimum Distributions (RMDs): Traditional IRAs require that you start taking withdrawals at age 72, while Roth IRAs DO NOT have RMDs. This means that you can let your Roth IRA grow tax-free for as long as you want, while with a Traditional IRA you must start withdrawing money at a certain age, even if you don’t need it.
3. Estate Planning: Roth IRAs can be a good choice for estate planning because there are no RMDs and the withdrawals are tax-free for your beneficiaries. Traditional IRAs, on the other hand, require your beneficiaries to pay income tax on the withdrawals they receive

Keep in mind if you expect to be in a higher tax bracket in retirement than you are now, a Roth IRA allows you to pay taxes on the contributions now and avoid taxes on the withdrawals in retirement. With a Traditional IRA you can deduct the contributions now and pay taxes on the withdrawals in retirement. One of the best things you can do to plan for your own retirement is to get educated about your options.  If you haven’t already started saving for retirement, start today. The earlier you start the more time your money has to grow and it’s never too late to get started!

​Need help deciding? Consult a financial advisor or tax professional to determine which type of IRA is best for your specific situation.