When saving for retirement, you may have questions about which account you 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.
This flowchart will assist you in navigating these considerations. It includes:
- 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
