Roth vs Traditional (IRA/401k)

Definition

Roth accounts use after-tax money with tax-free growth; Traditional uses pre-tax money with taxed withdrawals.

FAQs

Should gig workers choose Roth or Traditional?

Roth often better for gig workers in lower brackets now expecting higher income later.

Similar Terms

Solo 401(k)

Retirement plan for self-employed allowing both employee and employer contributions up to $66,000/year.

SEP IRA

Simplified Employee Pension retirement account for self-employed with contributions up to 25% of net income.

Roth IRA

Individual retirement account with after-tax contributions that grow tax-free, with tax-free withdrawals in retirement.

Traditional IRA

Individual retirement account with tax-deductible contributions that grow tax-deferred until withdrawal.

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Last updated: January 18, 2026

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