So I am aware that with a Roth you pay taxes up-front and with a traditional you pay when making withdrawals. But I didn't realize that with a traditional you would also have to pay taxes on the earnings! So given the following scenario:
I contribute $100,000 to a Roth, I pay taxes on $100,000.
I contribute $100,000 to a Traditional IRA, it grows to $1,000,000. I pay taxes on $1,000,000.
Why would anyone do a traditional? Is it just that you may not be able to afford to hit the $5,500 limit if you have to pay taxes as well so therefore you don't have as much money compounding?
Submitted February 09, 2017 at 12:00PM by chuckliddelnutpunch http://ift.tt/2kXFWAy
