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tax-free Roth IRAs: Original post by Jane Meggitt of Demand Media To avoid paying taxes on an Individual Retirement Account withdrawal, choose a Roth IRA, if eligible. Traditional IRAs, while tax-deductible on federal income-tax returns if meeting certain requirements, are tax-deferred and withdrawals are taxed as ordinary income. Roth IRA contributions, made with after-tax dollars, are tax-free at withdrawal if the…

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