Roth vs. Traditional

Pay tax now, or pay tax later?

That's the whole decision in one sentence. Both are great ways to save — they just handle taxes at different times.

Traditional

Tax break now. Contributions come out before taxes, lowering this year's taxable income. You pay tax later, when you withdraw in retirement.

Often favored if you expect a lower tax rate in retirement.

Roth

Tax break later. Contributions are made after tax, so there's no break today — but qualified withdrawals in retirement come out completely tax-free, growth included.

Often favored if you expect a higher tax rate in retirement.

Roth vs. Traditional comparison

A simplified look at the same contribution under each option.

Assumes the same amount goes into the account under each option and one illustrative growth rate. Real outcomes depend on your full tax picture.

Grows to (before any tax)
$0
Traditional, after tax
$0
Roth, tax-free
$0
Extra tax you'd pay today for Roth
$0

Which one should you pick?

It depends on your income, your tax bracket now vs. later, and your goals — and you don't have to choose only one; many plans let you split. This is exactly the kind of question worth a five-minute conversation.

Ask Connor what fits your situation