Welcome back, everyone. It's Finance Friday, another special edition of Money Girl.

This is the show where I answer your burning money questions each week.

I really love hearing from you and just hearing what's on your mind.

So if something finance related is worrying you or you have a question, please leave me a

voicemail by calling 302-364-0308. You can remain anonymous or let me know if you're okay with me

using your voice on the show. Today's terrific question comes from an email I received from Erica B, who writes,

thanks for your show. I've been listening for years and have learned so many wonderful tips on how to

manage money and grow my wealth. I'm 46 with three months worth of emergency savings and no debt other than my mortgage. I'm contributing

10% of my income to my 401k and receiving an additional 3% employer match. I keep hearing about the

benefits of a Roth IRA. If I'm unable to max out the annual limit for my 401k, what are the pros and cons of

also contributing to a Roth IRA? That is an excellent question, Erica. I really appreciate you

sending it in. And congratulations on what you've achieved with your money. Having a healthy emergency fund,

no consumer debt, and contributing a total of 13% of income to a retirement plan means you're

on a great financial path. And I love that Erica's also considering the benefits of a Roth retirement

account. This podcast will review

who can contribute to a Roth IRA and the pros and cons of having one when you also contribute

to a retirement plan and work. So first let's review the differences between traditional and

Roth accounts. When you're choosing between these two, it's really essential to

understand their key differences, which mainly concern when you pay taxes and the various

contribution limits. So any type of traditional account, it could be a traditional IRA or a traditional

401k, traditional 403B. They allow you to make

tax-deferred contributions. In other words, the funds you put in are not included in your

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