Is the Roth IRA or Traditional IRA a better investment?

[@mattweeks6715]

For those that looked at this and thought- ok what's the difference? The difference is what tax bracket you are in now vs when you retire. If your in a very high tax bracket now, but will be lower when you retire, then traditional is the way for the pre-tax benefits now. If you are already in a low bracket, and all things are equal in the end as he shows- Go with the Roth- Why? Because you DONT KNOW what tax brackets will be in 20-30- 50 years. They could be much higher. THAT ALL SAID- At least one retirement account should be a roth, especially if you are young. There will be no taxes when you retire at all on that account, and unless your a super duper accounting hawk with your life, you wont notice the tax savings because you'll probably spend that money anyway on other worthless things. :)

[@TravisSickle]

It's not a case for or against. It's an order of operations. Think about this...the more you save, the less you'll need.

[@carlossalinas6234]

Does it make sense to convert a traditional IRA into a Roth IRA if you risk moving up a higher tax bracket for the filing year?

[@TravisSickle]

good question...kzbin.info/www/bejne/mqOYZWmYatmSl5o

[@Slapsamillion]

So the difference between a Roth IRA and Robinhood...is that Robinhood has capital gains taxes....where an IRA does not? Is that correct?

[@TravisSickle]

Here you go kzbin.info/www/bejne/jYbGnmZrnMtjbpY

[@Slapsamillion]

@@TravisSickle TY!!! 😁

[@ak_777-d5k]

What happens if you invested the same amount in each Roth and Traditional but over time taxes for the Roth upon your allotment deposits were lower than the taxes upon withdrawal with the traditional around 50+ years later when you are 65 - 70 years old? Wouldn't it then be better to elect Roth since you would take on lower taxes with the Roth assuming taxes will increase in 50+ years when you're pulling from these plans vs the lower Roth taxes 50+ years earlier?

[@nineseven420empire3]

It depends. Have you maxed your HSA first?

[@jayem5807]

yes! thanks