If you're young and your marginal tax rate is below 25%, yes, Roth all the way, but I firmly believe that it's a great idea to defer taxes of 25% or more.Well said, Murray. But keep in mind the need to make those payments last for your lifetime probably keeps your balance large. But mandatory distributions in a traditional IRA at age 70-1/2 can take a big hit--especially if Social Security payments are taxable and consume your lowest tax brackets.It is probably a good idea to use some of that surplus 15% bracket you describe to do partial Roth conversions and minimize mandatory distributions when you can.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra