Lesson
Traditional vs. Roth
Summary
Pay taxes on the seeds now or on the harvest later? That single choice determines thousands of dollars in retirement income. This lesson unpacks tax-deferred versus tax-free retirement accounts and helps students decide when a Roth beats a Traditional IRA.
Bellringer: Seeds or Harvest?
- Pose the seeds vs. corn tax question.
- Surface intuitions about paying tax now vs. later.
Instruction
- Define tax-deferred vs. tax-free.
- Contrast Traditional and Roth IRA mechanics.
- Connect current vs. future tax bracket to the choice.
Discussion: Which Type of Account?
- Divide the class into groups to recommend an account type for Mateo and Anna.
- Bring the class back together and have students defend their choices for each person.
- Discuss why a high earner may prefer traditional and a lower earner may prefer Roth.
Activity: Roth vs. Traditional IRA
- Students complete the Roth vs. Traditional IRA worksheet.
- Classify account features by type.
Wrap-Up & Assessment
- What is one pro and one con of a Traditional IRA?
- What is one pro and one con of a Roth IRA?
| Est. Time | Activity | Description |
|---|---|---|
| 5 min | Bellringer: Seeds or Harvest? |
|
| 10 min | Instruction |
|
| 12 min | Discussion: Which Type of Account? |
|
| 13 min | Activity: Roth vs. Traditional IRA |
|
| 5 min | Wrap-Up & Assessment |
|
Lesson Prep
Roth and Traditional IRA
Students compare Roth and Traditional IRA characteristics.
Class Presentation
Includes a 15-slide deck with teacher notes. Present from Banzai, download a PDF, or copy it to Google Slides.
Presentations, Ready to Go
- Built-in PresentationPresent full screen, straight from Banzai
- Copy to Google SlidesMake an editable copy for your class
- Download or PrintSave as a PDF or print
- Teacher NotesSlide-by-slide guidance, printable as one handout
Unit 8: Retirement
401(k), 403(b), and IRA
Skipping an employer 401(k) match is like turning down a raise — yet many workers do exactly that. This lesson unpacks 401(k)s, 403(b)s, IRAs, and the magic of free money through employer matching.
Traditional vs. Roth
Pay taxes on the seeds now or on the harvest later? That single choice determines thousands of dollars in retirement income. This lesson unpacks tax-deferred versus tax-free retirement accounts and helps students decide when a Roth beats a Traditional IRA.
Social Security & Pensions
Your FICA taxes aren't sitting in a personal account with your name on it—they're funding someone else's retirement right now. This lesson explores how Social Security's pay-as-you-go system works and compares defined benefits like pensions with defined contributions like 401(k)s.
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