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URL:  https://boards.fool.com/quotthere-is-probably-no-chance-that-taxes-are-34550079.aspx

Subject:  Re: Roth IRA question Date:  7/2/2020  7:56 AM
Author:  TheBreeze Number:  130841 of 131102

"There is probably no chance that taxes are going to be less in the future years because of all the pandemic money being handed out by the government. Someone is going to have to pay for it."

Ergo: Best to add to the Roth now instead of other 401's. This is a new twist to the old logic of having a Roth.


A long time ago, it seemed like a good idea to have some money in different kinds of vehicles (regular IRA/401k, Roth IRA, outside investments) so as to have "more levers to push" when it came time to spending down my portfolio. Note that if your company's 401k (or 403b, etc.) has matching money, it will be "regular" 401k money (will be taxed on withdrawal) whether your contributions are pre- (regular) or post-tax (Roth). So, you'll be building up two "kinds" of accounts.

Obviously, if you're in an attractive marginal rate, it makes sense to take advantage of the Roth or convert regular IRA money to Roth.
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