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Originally Posted by Tully Mars
This is the way I understand it:
With a Roth IRA you put money into it after you're taxed on the money but you're not taxed on your withdrawals since you already paid taxes on it . With a standard IRA or 401K you can not take money out until you're 59 1/2 and your withdrawals are taxed at that time. The benefit is you're income is likely to be less so your tax bracket will be lower when you retire.
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The idea was told to me like this if you don't live to collect your Roth, you already paid the tax.
If you don't live to see your IRA, you paid with pre-tax dollars anyways.
Either way you're dead and don't collect your IRA, but with the regular IRA you didn't pay the taxes at all.
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