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NEIN | when you use an IRA vs Roth. Essentially your tax rate percentage, for most that will be at least 30% and for those in the higher brackets it will be more like 40%. So even though you MAY be in a slightly higher tax bracket when you retire you have way more invested up front pre tax so in the end you may have way more total disposable income too. The tax rate has to go up quite a bit to offset having an additional 40% invested pretax earning say even 6% historic returns. | |
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