Roth vs. Traditional IRA – Which One Really Saves You More?
Sep 23, 2025
Explore whether a Roth IRA truly outshines a traditional IRA, as the decision hinges on your tax brackets. Learn how smart tax strategies like arbitrage and strategic conversions can significantly boost your retirement savings. Discover why having a mix of Roth and traditional accounts offers flexibility in managing retirement income. A compelling case study illustrates how one retiree added over $100,000 to their assets through effective pre-tax and conversion strategies. Get ready to rethink your retirement tax planning!
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insights INSIGHT
Roth Not Always Best
Roth isn't always superior; the right choice depends on relative tax rates now versus retirement.
Put money pre-tax when your current tax rate is higher than your expected future rate.
insights INSIGHT
Focus On Your Taxable Income
Evaluate your specific taxable income, not just headline federal or state brackets.
Retirement income sources and deductions often lower effective tax rates compared to working years.
insights INSIGHT
Why Retirement Taxes Tend To Be Lower
Social Security, capital gains, and higher standard deductions often reduce retirement taxes.
These factors mean many retirees pay less tax for the same lifestyle-level income.
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Is a Roth IRA really better than a traditional IRA? The truth is... it depends on your tax situation. In this video, you’ll learn why your current tax bracket versus your retirement tax bracket should drive your decision, not blanket advice.
Most retirees pay less in taxes later in life, which creates opportunities for smart strategies like tax arbitrage and Roth conversions. By contributing to traditional accounts during high-earning years and converting in lower-tax years, you can potentially save thousands (even hundreds of thousands) over your lifetime.
James also covers why neither Roth nor traditional accounts are truly tax-free, and how tax diversification gives you flexibility to manage income in retirement. With a real case study, you’ll see how strategic Roth conversions added more than $100,000 to retirement assets.
Listen now to discover how to choose between Roth vs traditional IRAs and optimize your retirement tax planning.
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Advisory services are offered through Root Financial Partners, LLC, an SEC-registered investment adviser. This content is intended for informational and educational purposes only and should not be considered personalized investment, tax, or legal advice. Viewing this content does not create an advisory relationship. We do not provide tax preparation or legal services. Always consult an investment, tax or legal professional regarding your specific situation.
The strategies, case studies, and examples discussed may not be suitable for everyone. They are hypothetical and for illustrative and educational purposes only. They do not reflect actual client results and are not guarantees of future performance. All investments involve risk, including the potential loss of principal.
Comments reflect the views of individual users and do not necessarily represent the views of Root Financial. They are not verified, may not be accurate, and should not be considered testimonials or endorsements
Participation in the Retirement Planning Academy or Early Retirement Academy does not create an advisory relationship with Root Financial. These programs are educational in nature and are not a substitute for personalized financial advice. Advisory services are offered only under a written agreement with Root Financial.
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