No. of Recommendations: 1
You never do pay taxes on the gains from the investments in the Roth, if you hold for retirement as intended. With a deductible IRA, you pay taxes as ordinary income on the amount taken out, which includes the gains.

OTOH, you pay your current income tax on the Roth contribution which costs you your marginal tax rate if you direct money from the 401k to the Roth. From the income of the OP listed, it sounds like that's around 25%.

Personally, with little to no expected income in retirement, it would be very easy for me to pay well under 25% in taxes on my IRA distributions using the current tax laws.

Here's a post outlining how a couple making $100k could cut their federal taxes from 25% to 15.3% by directing their retirement savings to a 401k/trad IRA instead of a Roth:

(of course, there are many factors to consider including RMDs and changing tax rates, but, as someone else mentioned, Roths are not clearly the best option tax wise)

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