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Ultimately, the goal is to maximize retirement savings while minimizing taxes. It’s crucial to conduct thorough research or consult with a financial planner to aid in making this decision.
Contributing to Both Types of IRAs
Something many may not realize is that individuals can contribute to both Traditional and Roth IRAs in the same year. However, the total contributions must adhere to the annual limits set by the IRS. For 2016, contributions were capped at $5,500 for those under 50, and $6,500 for individuals 50 and older.