WTF is a Roth IRA?

Should you pay income taxes now or later on all that money you’re earning?

Most of us think about putting our money in retirement accounts as a way to save on how much income tax we have to pay this year, as well as saving all of that money to live on after we retire. But, wait!

For many people who make under a certain amount of money (I’m pretty sure Sara says how much in this episode so you should listen), it might actually make more sense to put at least some of your investment dollars into a different kind of investment account. Enter: Roth.

Fun! Another financial tool to try to remember.

Sara breaks down what the “Roth” part of a Roth investment account means, and how it’s different than a non-Roth (normal?) investment account while Caitlin misunderstands for the 47th time. It has to do with taxes, people.

And if you just can’t live another moment without understanding more about how income taxes work, listen to our episode Women on the Verge of Doing Their Taxes!

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This episode was edited by our co-producer Kelly West. Music by Bad Bad Hats and Devmo.