Roth vs Traditional IRA: The Costly Retirement Tax Mistake Most People Make

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Most people think the Roth versus Traditional decision is simple:
pay taxes now or pay taxes later.

But after working with retirees and pre-retirees for years, I can tell you that this framing is where most retirement tax mistakes begin.

The reality is that your retirement tax rate isn’t a single number. It changes over time. It’s shaped by when you retire, when Social Security starts, when required minimum distributions kick in, how much money sits in pre-tax accounts, and whether one spouse eventually passes away. Those variables matter far more than the basic “taxes now vs taxes later” question most people rely on.

In this video, I walk through why the Roth vs Traditional comparison is often misunderstood, how retirement income actually stacks together, and why many people unknowingly lock themselves into higher lifetime taxes—even when they think they’re doing everything right.

We talk about how required minimum distributions can push income higher later in retirement, how Social Security taxation works when combined with other income sources, and how Medicare IRMAA premiums can quietly increase healthcare costs simply because taxable income crosses certain thresholds. These secondary effects are rarely discussed, yet they can dramatically change the math behind Roth and Traditional strategies.

I also explain why the years between retirement and the start of RMDs are often the most powerful tax planning window of your entire life. For many people, this is the lowest-income period they’ll ever experience, and the decisions made during this phase can determine whether Roth strategies help—or hurt—over the long term.

We also cover one of the most overlooked issues in retirement tax planning: survivor tax brackets. When one spouse passes away, tax brackets compress, income sources don’t decline proportionally, and taxes can increase at exactly the wrong time. A thoughtful Roth strategy, implemented over many years, can help manage this risk—but only if it’s done intentionally.

This isn’t about choosing the “best” account. It’s about understanding how your income will change across retirement, how taxes are applied at different stages, and how to build a coordinated strategy that minimizes lifetime taxes—not just this year’s bill.

If you’re within ten years of retirement, already retired, or trying to make smarter contribution decisions today, this framework can help you evaluate Roth and Traditional options with clarity instead of assumptions.

And if you want a second set of eyes on your retirement strategy—to stress test your tax plan, income plan, and withdrawal approach—click the link above to schedule a conversation. We’ll walk through your situation and identify where planning opportunities may exist.





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