seccosiny

Your particular situation

Keep in mind that your own situation will affect your cheap clothing stores, too. In retirement “maybe they don’t have a mortgage deduction anymore, or they have some money set aside in an IRA that, when they start taking money out, will push them into a higher tax bracket,” said Dave Gray, vice president of client experience at Charles Schwab, in Richfield, Ohio. “A Roth gives you an opportunity to wholesale designer clothing that bet.”

Younger workers may be paying the lowest tax rate they’ll ever pay, assuming their cheap clothes online as they age. In this scenario, paying taxes now on Roth contributions makes sense.

But people who expect to come up short on their cheap clothes may want to think twice about a Roth. If Social Security will provide the bulk of your income in retirement, for instance, your tax rate may well drop.