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ROTH Vs Traditional. At what age do we make the switch?

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    ROTH Vs Traditional. At what age do we make the switch?

    I understand there are "income" vs "tax" reasons to invest in a Traditional over a ROTH but I'm asking if you feel there is an age cut off regardless of income.

    My thought process is if I'm in my 60's, making average income (Say $60 - $75k per year), is there a reason to continue to invest in a ROTH or should I take the tax deduction now since there are not as many years for my dollars to grow.

    Your thoughts?

    Age is largely irrelevant, instead the tax rate is the prime factor. If your tax rate will be higher during retirement choose Roth now, otherwise choose traditional.


      Actually age and tax rate and both pretty much irrelevant. If you have the Roth available to you, that is usually the most advantageous to you.

      If you only have like 8 years until retirement and are in a 10% higher tax bracket today than what you will be at retirement, then yes the Traditional could be more advantageous from a purely tax-standpoint. However, for most people in most situations, the Roth IRA is best.

      The amount that you pay in taxes up front with a Roth IRA is small compared to the taxes that you will pay in the future on a Traditional.
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        In my opinion, you should also be considering your assets. Do you have a large amount in tax-deferred already? Do you have a pension, or rentals, or dividend paying stocks, or any other assets producing any significant income?

        If you are not on track to fill up your 0% and 10% brackets in retirement, it does not make any sense at all to fund a Roth.


          Hmm, I was just thinking about this today. If I'll be receiving 42k alimony per year for the next ten years (I'm 50 now), but it will decrease to 30k when I turn 60 and can start withdrawing, should I just use a traditional Ira rather than a Roth for the next 10 years?

          I wouldn't even have bothered to read this question a year ago. I trusted other people to understand and make decisions for me. Not my wisest move, but I'm so thankful that I can use sites like this to learn and move forward.

          I'm sorry I have no input for the OP, but I appreciate that the question is out here.