colfax_m
Diamond Member
- Nov 18, 2019
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Or you can use a pre-tax account such as a 401k which most people have access to. Also, not everyone has to pay capital gains, people with incomes below $40k or $80k are exempt.So you say in order to pay the taxes on your traditional IRA that you don't have to pay on Roth you need to open another after tax account and pay capital gains taxes so your opportunity realization will be basically money you have to give to the government.
But the main thing is that most people pay higher marginal tax rates during their working years than in their retirement years. Furthermore, the tax benefits of the traditional IRA is on marginal rates and the tax rate on the distributions of the account are less given standard deductions and the various tax brackets.