IRA

Investing & Markets
The Wealthspire Team
By The Wealthspire Team
July 23, 2021 · 1 min read

What is An IRA?

An Individual Retirement Account (IRA) is an account that allows you to save for retirement through tax deferred (traditional) or tax-free (Roth) growth.

Traditional IRA vs. Roth IRA

A traditional IRA allows you to contribute pre-tax income directly into your retirement account. This is called tax-deferred because instead of paying taxes currently, you’ll pay (income) taxes when you withdraw money out of the account.

Roth IRA

A Roth IRA allows you to contribute income that has already been taxed. This means that as you grow your money in your Roth IRA, you will not have to pay additional taxes when you take money out of the account.

Mega Backdoor IRA

Another way to be sure you’re making the most of your retirement funds, is to set up a 401(k) and contribute the maximum amount each year. Learn more about a Mega Backdoor IRA with our guide.

Inherited IRA

An inherited IRA works a little differently than other IRA types. Contributions cannot be made to these types of IRAs, and they have their own rules about when money can be taken out of these accounts. 

The Wealthspire Team
The Wealthspire Team

Wealthspire Advisors LLC and certain of its affiliates are separately registered investment advisers. © 2026 Wealthspire

This material should not be construed as a recommendation, offer to sell, or solicitation of an offer to buy a particular security or investment strategy. The information provided is for informational purposes only and should not be relied upon for accounting, legal, or tax advice. While the information is deemed reliable, Wealthspire cannot guarantee its accuracy, completeness, or suitability for any purpose, and makes no warranties with regard to the results to be obtained from its use.

Wealthspire and its representatives do not provide legal or tax advice, and Wealthspire does not act as law, accounting, or tax firm. Services provided by Wealthspire are not intended to replace any tax, legal or accounting advice from a tax/legal/accounting professional. The services of an appropriate professional should be sought regarding your individual situation. You should not act or refrain from acting based on this content alone without first seeking advice from your tax and/or legal advisors.

Certain employees of Wealthspire may be certified public accountants or licensed to practice law. However, these employees do not provide tax, legal, or accounting services to any of clients of Wealthspire, and clients should be mindful that no attorney/client relationship is established with any of Wealthspire's employees who are also licensed attorneys.

Please Note: Limitations. The achievement of any professional designation, certification, degree, or license, recognition by publications, media, or other organizations, membership in any professional organization, or any amount of prior experience or success, should not be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results or satisfaction if Wealthspire is engaged, or continues to be engaged, to provide investment advisory services, nor should it be construed as a current or past endorsement of Wealthspire by any of its clients or a third party.

Registration of an investment advisor does not imply that Wealthspire or any of its principals or employees possess a particular level of skill or training in the investment advisory business or any other business.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.

Subscribe to our newsletter

Get the latest news & perspectives from Wealthspire.