Question

Other than the taxation differences, what is another advantage of Roth IRAs over traditional IRAs?

a) Higher Contribution Limits
b) No Required Minimum Distributions
c) Employer Matching
d) Immediate Tax Deductions

Answer 1

Roth IRAs have the advantage of having no Required Minimum Distributions, allowing for prolonged tax-free growth of investments.

Step-by-step explanation:

Other than the taxation differences between Roth IRAs and traditional IRAs, another advantage of Roth IRAs is No Required Minimum Distributions (RMDs). While traditional IRAs require account holders to start taking minimum distributions at a certain age, Roth IRAs have no such requirement, allowing the savings to potentially grow tax-free for a longer period. This is particularly advantageous for those who wish to let their investments grow for as long as possible or intend to pass on the assets as part of their estate.