Why Retirement Savings in Roth IRAs Tend to Outlast Traditional 401(k)s
Editor:
Brad Tuttle
Money; Getty Images
Having enough money to last through retirement is a goal for most people, but what's the best strategy for saving? As it turns out, the type of retirement account you select can influence how far your money will take you.
A new report from the American Accounting Association explores whether it's better to pay taxes on retirement accounts when the money is invested or later, at the time of withdrawal. Specifically, it compares how retirees' savings lasts for people who have tax-deferred accounts like 401(k)s versus those with currently-taxed accounts such as Roth IRAs. The findings may come as a surprise.
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