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Forex
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The problem with your question is that you are not comparing it to anything. In order to know how a retirement vehicle impacts your taxes you need to compare it with another vehicle. Majority of the time Roth is compared with Traditional (IRA or 401k).
Roth IRA contributions are made with after tax dollars, meaning you when you file your federal income tax you pay taxes on what you put into the retirement plan. When you retire and are over 59 1/2 years of age you can withdraw from your Roth IRA without being taxed. So if you are planning on saving for retirement in a Roth vehicle over a Traditional IRA you pay more taxes now and less when you retire.
There isn’t much tax jargon when you research this on your own, and the little that there is you should be able to google or look up in a dictionary to figure it out the meaning.
there are two types of an IRA, one is called the traditional one where the taxpayer contributes to this type of plan each year and is able to use that amount as a credit to reduce his gross income, this in turn reduces his taxable income
he retains this plan,lets it grow, can add to it with the subsequent tax advantage each year, ultimately when he takes distribution, he will be taxed on all of it
then there is a Roth, also the taxpayer contributes to a plan, there is no tax advantage with contributing and as the plan earns money is also not taxable when he takes a distribution of it, he has to retain in 5 yrs however for anything other than his original contribution to not be taxable(this is a saving plan that is not taxable–5 yr limit, remember)
Roth IRAs
A Roth IRA is an IRA that, except as explained below, is subject to the rules that apply to a traditional IRA.
http://www.irs.gov/Retirement-Plans/Roth-IRAs
Details about Roth IRAs are contained in Publication 590, Individual Retirement Arrangements (IRAs) and include:
Hope that you find the above enclosed information useful. 03/03/2013
Pagodabo below gave you all the basic information you need to your question.