Retirement Starts Today Radio

Are you sure you're making the right call when deciding between Roth and traditional retirement accounts? A recent article on the Michael Kitsis blog started a debate into why, during your peak earning years, contributing to traditional pre-tax accounts might actually make more sense—even if tax rates rise in the future.  I’m going to break down why high-income earners can often benefit more from deferring taxes now and paying them later in retirement when they have more control over their income. I’ll explain how using tax deductions at your highest earning years and withdrawing funds at lower tax rates in retirement can save you a significant amount in taxes over time. It’s all about maximizing your flexibility and finding opportunities to lower your tax burden down the road.  Outline of This Episode [0:20] Why are pre-tax contributions better during peak earning years? [0:52] How can retirees better control income and taxes after retiring? [5:00] What’s the key tax strategy difference between Roth and tra