Timothy Sumer

The ultimate benefits of a Roth IRA vs. a traditional IRA are subjective depending on the individual and what tax bracket they expect to be in when they reach retirement age. In other words, would you prefer to receive your tax benefits now or after you retire? Since Roth IRA contributions aren't deductible and qualified withdrawals are tax-free, they may ultimately be a better option for those in a relatively low tax bracket at the time of investing. However, if you qualify for the traditional IRA tax deduction and are in a moderate-to-high tax bracket, then the immediate tax savings might be a better tradeoff. As a general rule of thumb, if you expect to be in a lower tax bracket when you retire, a traditional IRA might make more sense. However, if you expect to be in the same or higher tax bracket when you retire, it could be wiser to pony up the tax dollars upfront with a Roth IRA. But again, if you’re unsure of what your financial situation is going to look ...