Having a Roth retirement account enables your money to grow tax-free. You also will not be required to take required minimum distributions (RMDs) when you reach 73 and do not need to pay taxes on the money when you make a withdrawal. Contributing through a backdoor Roth individual retirement account (IRA) enables you to reduce taxes and skip the requirement for taking RMDs.
Contributions to a traditional IRA are tax-deductible. Because you get a tax break with your contributions, you will pay taxes when you withdraw money at your regular income tax rate.
