GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you’ve got the option to read more about oureditorial guidelinesand our products and servicesreview methodology.
Most of these traditional retirement accounts let you defer taxes until retirement, meaning youll pay taxes on withdrawals.
Here are three reasons a Roth account is thebest choice for your retirement savings over a traditional account.
This means that as your investments increase in value, so does the amount youll owe Uncle Sam.
In short, a Roth account protects your gains from future tax burdens.
This traditional thinking may not go your way if tax rates increase in the coming decades.
While predictingfuture tax ratesis impossible, its important to note that theyre historically low right now.
However, its difficult to predict future tax rates.
Thats why having a mix of both Roth and traditional accounts may make sense.
Tax diversification gives you the flexibility to manage withdrawals and adapt to changes in tax rates.
Retirement planning involves many unknowns, so getting professional guidance can be valuable.
Afinancial advisorcan help you estimate future tax rates and calculate the impact of contributing to different retirement accounts.
More From GOBankingRates
Share This Article:
