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Topic: Business
Number of pages / Number of words: 4 / 919
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Whether you're likely to come out ahead with the upfront tax deduction from the traditional IRA or the benefit of tax-free withdrawals from the Roth IRA depends on your tax bracket now, your expected tax bracket in retirement, how long you plan to keep the money in the IRA, and the return you expect from your investments...


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But many workers can expect to end up in a lower tax bracket when they retire, since most workers' incomes decline in retirement when they are no longer earning weekly paychecks.

How long you expect to keep the money in the IRA will also be an important factor. Roth IRAs are also well suited for savings that you don't expect to need in retirement...


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