Financial Information
Difference between Roth IRA CD’s and regular CD’s?
Question : Difference between Roth IRA CD’s and regular CD’s?
My credit union offers Roth IRA CD’s, Traditional IRA CDs, Plain CDs, Roth IRAs and Traditional IRAs. Right now all the rates are the same, and my husband and I are deciding between just starting Roth IRAs, or Roth IRA CDs, but we were wondering what would be different if we just did regular CDs instead of the IRA cds. Can anyone explain the difference and what would be better, we still have more than 30 years left to keep saving. Any information?
ira cd rates
Best answer:
Answer by the d
a roth ira is tax free if you leave it in for a certain amount of time. i think it is like five years, however you can only put in 3,500 or so per year, i could be a little off on the 3,500 figure but it’s something like that.
Interest on a regular CD will be taxable… And accessible at maturity.
Interest on a CD within a Roth is tax free…. But theoretically you can’t touch it until you are 59 1/2.. There are some ways to get it out, but it’s supposed to be a retirement account.
A roth has a max contribution of $ 5k per year.