Wise-Wallet

Question 15

Roth vs Traditional is fundamentally about tax timing: pay tax now (Roth) or later (Traditional). The best choice depends on expected future tax rates and personal goals.

Which rule helps choose between Roth and Traditional retirement accounts?

Did You Also Know...

^{By Wise Wallet}

SEP IRAs let small-business owners make sizable employer contributions and are simpler to administer than some alternative plans.

Always choose Roth; it’s always best.Choose based on whether you expect higher or lower tax rates in retirement.Always choose Traditional; taxes are lower later.The accounts are identical for tax purposes.