When saving for retirement, individuals will often ask which account they should be making contributions to – a traditional IRA or a Roth IRA? The answer depends on several different factors that should be considered and discussed.
To assist in this conversation, we have prepared the “Should I Contribute To My Roth IRA Vs. My Traditional IRA?” flowchart. This flowchart considers:
- Eligibility to deduct contributions to a traditional IRA
- Eligibility to make contributions to a Roth IRA
- Current tax rates vs. future tax rates
- Ability to max out the contributions
- RMD impact