Your friend Jenny says a Roth IRA has the best tax advantages, because you pay taxes now and won't have to pay them when you take the money out in retirement. Why might she be right

Right if you expect tax rates to go up or because right now you are starting your career and your tax bracket would be lower now than what it will be later on. When you are older and in retirement, you would want to save your money and not have to worry about any taxes.

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abiolataiwo2015 abiolataiwo2015 · Answer 2 · 2021-10-29T20:23:16+02:00

Based on the information given Jenny is right as Roth IRA has the best tax advantages.

Roth IRA is an Individual Retirement Account which are use for saving money ahead of retirement in which the owner of the account is taxed on each amount of money deposited into account and will not be taxed when the owner want to withdraw the deposited money after retirement.

Based on the information given Jenny is right as the account holder does not have to worry about tax deduction or about paying tax when taking out their money after retirement.

Reason been that the tax amount has already been deducted at the time when the money was deposited into the owner account .

Inconclusion based on the information given Jenny is right as Roth IRA has the best tax advantages.

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