Ready For Retirement Pretax vs Roth- Which is Better for You If You're in the 24% Tax Bracket?
If you're in a high tax bracket now and expect to remain in a high tax bracket after retirement, should you prioritize pre-tax retirement accounts or Roth retirement accounts for individuals?
James answers this and discusses various factors to consider in making this decision, including current and future tax brackets, required minimum distributions (RMDs), charitable giving, life expectancy, and the impact on heirs. Using a real-life scenario, James offers a thoughtful approach to help you make an informed decision based on your unique circumstances.
Questions Answered:
Should individuals in high current tax brackets prioritize pre-tax retirement accounts or Roth retirement accounts?
What impact will required minimum distributions (RMDs) have on your future tax situation?
Timestamps:
0:00 Intro
3:48 Considering Roth contributions
7:05 Example
13:25 Charitable giving
15:42 Life expectancy
18:18 What about your heirs?
20:52 Outro
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