Maggie is a 25-year old woman entering the workforce. She plans to start investing in an IRA right away, contributing as much as she can throughout her career. Now, and for several years while she is just starting out in her line of work, Maggie’s income level is not particularly high so she is in one of the lower tax brackets. At this point, which type of IRA would be best for Maggie, a Traditional or Roth IRA? Explain your reasoning using complete sentences.

Question

anonymous · Answer

I really could use an explanation of this. I know about Traditional IRA and Roth IRA but I am a bit confused on which should be used here. I would love an explanation