Many people have at least heard the term “Roth”, but many still don’t know that Roth accounts provide a choice on whether to pay taxes now or later, whether saving through an IRA or at work through a 401(k). If you want to pay taxes today, the Roth account is your answer.

The traditional advice says it’s better to save as much as you can today and pay taxes tomorrow. That seems especially true during peak earning years when you’re paying higher federal taxes. This line of thinking reasons that when you retire, your earnings drop significantly. As you take money from your retirement nest egg, your lower income will result in a lower tax bill. But is this the best advice? Are taxes high right now? Are there other factors to consider?

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