Asher Rogovy, chief investment officer at Magnifina, said many people ask whether they should open a Roth or Traditional IRA.
“One of the questions I hear the most is whether to open a Roth or Traditional IRA. The exact answer is complex and depends heavily on individual tax situations. Generally speaking, if you expect your tax bracket to increase by the time you retire, a Roth IRA is better. If it will decline, a Traditional IRA is better provided that you invest your tax deduction from the IRA contribution. For most of my clients, younger ones benefit more from a Roth IRA and clients closer to retirement are better off contributing to a Traditional IRA.”