No. of Recommendations: 3
If you are saving in your 20s, having 50-60-70 years of tax free gains for your ROTH sure can make a lot of difference. If you are in the 20-30% more tax bracket, all those gains are tax free. In a traditional account (non deferred) you are paying taxes annually on gains...interest and dividends and capital gains

T, you do realize, the main difference in return between a Roth and Traditional IRA is the difference between the tax rate at contribution vs tax rate at distribution? If the tax rates are the same, so is the return. Basically, try to project your retirement tax rate and pay when lower.

Jack
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