How to choose between a Roth IRA and Traditional IRA? We got a little geeky on todays FinTips! 😎

by | Feb 12, 2023 | Traditional IRA | 2 comments

How to choose between a Roth IRA and Traditional IRA? We got a little geeky on todays FinTips! 😎




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2 Comments

  1. Joel

    Only issue is this grid doesn't seem to take into account the social security taxability.

  2. Curt Christiansen

    It is a good guide but ROTH is better, all things being equal. Reason: benefits on "lower income" go away based on income but ROTH doesn't get included in that income. So, you could avoid taxes (after retirement) with a ROTH and get free or reduced medical and other benefits where all in a 401k could push you over the limit hurting you by possibly thousands or tens of thousands every year.
    Best method, have both an IRA and ROTH, then use the ROTH to keep you in the benefits area to supplement the 401k income once retired.

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