From my understanding...
Traditional IRA/401k: You don't pay income tax on it going in, but you do on withdraws whatever your tax bracket is at the time of withdraw.
Roth IRA/401k: You do pay income tax on it going in, but you don't pay taxes on withdraws.
But what about capital gains? Since it's invested, do I pay taxes on the growth?
I'm thinking it might be more advantageous to just go all Roth when I can...because say...15% of my income paying income tax now would be less taxes than how much that will grow in several decades when I withdraw. But if I do have to pay taxes on the growth...then I don't see why I would do Roth.
Submitted April 07, 2021 at 09:39PM by k032 https://ift.tt/2Q0akf7
