What You Can Do About Higher Taxes
When the tax man comes, the only thing to do is to use the tax laws to your advantage. When it comes to savings, this means using tax-advantaged accounts. While putting money into a traditional IRA is always a good idea if you can benefit from the tax deduction on your contributions, sometimes a Roth IRA contribution makes more sense in the long run.
For example, with current tax rates so low — and likely heading higher in the future — it might be better to forgo making a tax-advantaged contribution to a traditional IRA now and instead benefit from the tax-free withdrawals from a Roth IRA in the future.
