Submitted by latlog7 t3_y1o8f2 in personalfinance
Can you correct my understanding?: So in a traditional IRA, youre taxed when you withdraw. In Roth IRA, youre taxed when you contribute. Now if my working income is 3k/mo, and my retirement income at age 65 is $500/mo, surely i would want the tax rate that comes $500/mo, right? So i should elect to have the account be traditional, not ROTH, right?
I feel like this cant be because ROTH is always praised from what i hear
Edit: the retirement estimator i was using is crap. Im fine, and the incone in retirement will likely be a bit higher than working, so indeed, ROTH contributions are the right choice