How many types of IRA are there?

The four main types are the traditional, Roth, SEP and SIMPLE IRAs.

Which type of IRA is best?

Which type of IRA is best depends on your specific situation. If you want immediate tax benefits, think you'll be in a lower tax bracket in retirement and qualify for a deduction, a traditional IRA might be best. If you expect to be in a higher income tax bracket in retirement and want tax-free withdrawals, a Roth IRA may be more appropriate. If you're an employer, you might consider a SIMPLE or SEP IRA.

Which is better: Roth IRA or traditional IRA?

Whether a Roth IRA or traditional IRA is better depends on which account type can be most beneficial to you. If you want tax-free withdrawals in retirement, a Roth IRA would be better. If you want to claim a deduction for your contributions, a traditional IRA may be most appropriate.

What are the two most popular types of IRA?

The two most popular types of IRAs are the traditional IRA and the Roth IRA. According to the ICI, 31% (41.9 million) of US households owned a traditional IRA as of mid-2022, while almost 25% (32.3 million) owned a Roth IRA.