Question by va_girl: What are the differences between a money market IRA and a roth IRA?
I opened a money markey IRA, and was going to converit it to a Roth IRA (im 23) and have rolled my $ 3,500 from my 401K into my new IRA. When will I have to pay taxes on my $ 3,500 and when will I pay taxes on my new contributions? Im not sure if I should keep the money market, or change to the Roth. Thanks!

Best answer:

Answer by wartz
Sounds like a brand name. You can have a money market fund in any kind of IRA. In a Roth IRA you can not deduct the money you put in but the income and capital gains can be taken out tax free.

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I opened a money markey IRA, and was going to converit it to a Roth IRA (im 23) and have rolled my $3,500 from my 401K into my new IRA. When will I have to pay taxes on my $3,500 and when will I pay taxes on my new contributions? Im not sure if I should keep the money market, or change to the Roth. Thanks!

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