Forgoing the Roth Due to Taxes
The tax argument for contributing to a Roth can easily turn upside down if you happen to be in your peak earning years. If you're now in one of the higher tax brackets, your tax rate in retirement may have nowhere to go but down.
At what age does a Roth IRA not make sense?
Unlike the traditional IRA, where contributions aren't allowed after age 70½, you're never too old to open a Roth IRA.
At what income level does Roth IRA make sense?
Roth IRAs are best when you think your marginal taxes will be higher in retirement than they are right now. Single filers can't contribute to a Roth IRA if they earn more than $144,000 in 2022 ($153,000 in 2023). For married couples filing jointly, the limit is $214,000 ($228,000 in 2023).
What are the disadvantages of a Roth IRA?
If you want access to tax-free withdrawals when you retire, don't miss your chance to contribute to a Roth IRA today. Many retirement savers adore the Roth IRA because you can accumulate tax-free earnings and profits during retirement.