A Roth IRA is likely to be preferred over a traditional tax deductible IRA if

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A Roth IRA is preferred over a traditional tax-deductible IRA if the investor expects their marginal tax rate to be higher in retirement. This is because contributions to a traditional IRA are made using pre-tax dollars, meaning the investor will pay taxes on the withdrawals in retirement. However, with a Roth IRA, contributions are made with after-tax dollars, meaning the withdrawals in retirement are tax-free. If the investor believes they will be in a higher tax bracket in retirement, they will benefit more from the tax-free withdrawals of a Roth IRA.

A Roth IRA Is Likely to Be Preferred Over a Traditional