Part 2/7:
If you find yourself in a low tax bracket, typically ranging from 0-15%, you have an important decision to make. This bracket suggests that your taxes are unlikely to decrease in the future for various reasons—be it youthful exploration of your career, temporary unemployment, or a sabbatical of sorts. In this scenario, leaning towards a Roth IRA may be beneficial. This is because contributions to a Roth are made with after-tax dollars, allowing your money to grow tax-free and enabling tax-free withdrawals in retirement. Essentially, if you’re currently in a low tax bracket, it’s advantageous to pay taxes now while rates are manageable.