Financial experts have long considered Roth IRAs ideal investment vehicles for young workers. And with tax rates as low as they're likely to be for the foreseeable future thanks to the 2017 Tax Cuts and Jobs Act, there has never been a better time to contribute to one, experts agree. Especially because it is almost certain that tax rates will eventually increase.
Roth IRAs are the inverse of traditional IRAs: You contribute money after you have paid taxes on it, and your contributions and earnings can grow tax-free, assuming you follow the withdrawal rules. You lock in your current tax rate when you contribute, which means those currently in lower brackets, like young people, benefit the most.
"If tax rates do go up, which I think is a good assumption, the Roth becomes even more attractive because of its tax-free nature," says John Gugle, a certified financial planner. "That means tax-deferred money, like in a 401(k) or 403(b), is going to get hit harder."
So you are getting more for your money with a Roth.