What to put in Roth vs. traditional IRAs: It can make big differences
Before diving into the allocation strategy, let’s briefly revisit the fundamental differences between Roth and traditional IRAs.
Roth IRA: Contributions are made with after-tax dollars, but qualified withdrawals, including earnings, are tax-free.
Traditional IRA: Contributions are made with pre-tax dollars, providing an immediate tax deduction. Withdrawals, however, are subject to income tax.
Assessing current and future tax scenarios
To craft a personalized strategy, it’s crucial to evaluate the current and anticipated future tax scenarios …
