and make pretax contributions. If you expect to be in a higher tax bracket at retirement, contribute to a Roth account instead. You’re aiming to withdraw funds when your income tax bracket is the lowest, to reduce the taxes you’ll need to pay. ...
But Roth IRAs are an exception. These accounts are funded with after-tax dollars, but they offer significant tax benefits to those who wait until retirement to withdraw from them. Roth IRAs allow holdings to grow tax-free while brokerage accounts tax capital gains. You won't pay any taxes...
Discover what pre-tax deductions and pre-tax contributions are. Explore their types, compliance requirements, and their impact on employers.