If your marginal tax rate while working is low, but you expect your marginal income tax rate to be high after you retire, you may be better off investing in a traditional IRA than in a Roth IRA.

Question

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A Roth IRA allows you to pay taxes on your contributions now, and then withdraw the money tax-free in retirement. If you expect your tax rate to be higher in retirement, paying taxes now (with a Roth IRA) rather than later (with a traditional IRA) would be more beneficial.

If Your Marginal Tax Rate While Working Is Low, but You