Question

Eliza is a 60-year old woman who has been in the workforce for many years. She has made many investments over time as part of her retirement planning. But until now, she has no IRA. Eliza would like to add an IRA to her retirement portfolio. She can make contributions during her remaining 8 working years, but would like to maintain low-risk investments. At this stage of her career, Eliza is in a relatively high tax bracket, but she expects to drop to a lower tax bracket when she retires. At this point, which type of IRA would be best for Eliza, a Traditional or Roth IRA? Explain your reasoning

Answer 1

honestly don't know a lot about IRA's.
since she will be going into a lower tax bracket, she would rather pay taxes later
so go with Roth IRA which defers taxes until later is my understanding

Answer 2

http://en.wikipedia.org/wiki/Roth_IRA#Differences_from_a_traditional_IRA

Answer 3

okay thanks for your help.

Answer 4

now that i read more, my logic may be backwards...hmm
sorry

Answer 5

oyy

Answer 6

yea, the traditional ira has tax-deferred not the roth. but dont know if your understanding is right