When it comes to retirement saving, a Roth individual retirement account may prove to be advantageous for certain people. By utilizing a Roth IRA, you pay income taxes upfront on your savings so you can withdraw them tax-free at a later date.
Mike DiBacco explained a couple different ways people can benefit from using a Roth IRA as their preferred method of saving. Those just getting started in their career will likely be in a lower tax bracket, which could make it advantageous to pay taxes upfront before they are ready to retire. For those with earned income who don't have access to a workplace plan, Mike also notes how the account could be helpful because “you can save in a Roth IRA every year.”
"It could be far more efficient to pay today’s low tax and avoid what could be a higher tax in the future."
Interested in learning more? Check out the full article at U.S. News.
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