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30% · Q3/10
Question 3 of 10

What is the key tax advantage of a Roth IRA compared to a traditional IRA?

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Explanation
Roth IRA contributions are made with after-tax dollars, but qualified withdrawals, including all earnings, are tax-free in retirement. This makes Roth accounts especially valuable if you expect to be in a higher tax bracket when you retire.
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Asset allocation, the mix of stocks, bonds, and other investments in your portfolio, is considered the primary driver of long-term investment returns.