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natta225 [31]
3 years ago
9

Kyle anticipates that he will be in a higher tax bracket when he retires than he's in now.

Mathematics
1 answer:
kupik [55]3 years ago
3 0

Answer:

For Kyle, a Roth IRA would be a better choice if he wants to pay less tax, since the tax will be collected when he contributes funds.

Explanation:

If kyle falls in higher tax bracket when he retires, then Roth IRA is the best option.Roth IRA is an individual's retirement saving account that offers valuable tax benefits, that is the money invested within the Roth IRA is tax free and withdrawal in retirement will be tax free too.That is you contribute money now that you'll pay income taxes on this year, but the withdrawal will be tax free during retirement.

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