Authentic voices. Remarkable stories. AOL On Originals showcase the passions that make the world a more interesting place.
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Tags:Different Types of Accounts,financial advice,ira,monkeysee,tax,taxes
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What different types of accounts are there? David John Marotta: There are three main categories where you can put different types of accounts. The first is IRA accounts and those are things where you put the money in pretax and when you take it out, your tax recorded in income tax rates and you can take it after retirement. The second category is a taxable account, where you can put the money in. If it appreciates, you pay capital gains and when you take the money out, you are not taxed on it. It is more like a bank account. And the third category is Roth IRA account and the Roth IRA account, you put the money in after tax. You do not get any tax right off and it grows tax-free and when you take it out, you also do not get taxed on it. So, you put the money in after taxes, you have already paid the tax and then when you take it out, they are no taxes.