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I am planning on waiting until 59 1/2 so that I can withdraw money from my IRA penalty free. I also plan on being retired at this time, so I should not have to pay income tax. Considering that my income tax rate would be 0% since I am not generating any income, shouldn't I contribute to a traditional IRA rather than a Roth IRA.

I think you're confused about the taxation of IRA distributions. Except for the return of previously-taxed nondeductible contributions, every penny distributed from a traditional IRA is taxed as ordinary income. Unless your total taxable income in retirement is going to be zero, you will be paying income tax on at least some of the distributions.

You can get more information in All About IRAs, accessible through the QuickFind dropdown menu at the upper right of this screen.

Phil Marti
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