#609 Should You Contribute to Your Traditional IRA, or Go Roth Instead?
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Feb 20, 2026
They debate Roth versus Traditional IRA mechanics and why the simple tax-bracket argument can mislead. Topics include inheritance benefits of Roth accounts, backdoor Roth strategies for high earners, and using tax offsets to fund conversions. They also cover behavioral reasons to prefer Roth, when Traditional might still make sense, and the value of contributing early and automating contributions.
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Core Difference Between Traditional And Roth
A Traditional IRA gives a tax deduction now but taxes all contributions and growth on withdrawal.
A Roth gives no deduction now but grows and is withdrawn tax-free after 59½.
volunteer_activism ADVICE
Use Roth Contributions As A Flexible Fund
Roth IRA contributions (the contributions portion) can be withdrawn anytime tax- and penalty-free.
Only the earnings are restricted until age 59½, so use Roth contributions for flexible access.
insights INSIGHT
Retirement Tax Rates Often Don't Fall
The common belief you'll be in a lower tax bracket in retirement often fails for entrepreneurs.
Business owners often keep income streams and investment gains, so retirement tax rates may not drop.
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Should you take the tax deduction today… or build tax-free wealth for tomorrow? In this episode of the Main Street Business Podcast, Mark J. Kohler and Mat Sorensen break down the Roth vs. Traditional IRA debate and explain why the “lower tax bracket in retirement” argument doesn’t always hold up in the real world.
They walk through the math, the mindset, and the long-term strategy behind both options — including inheritance planning, self-directing for higher returns, tax rate uncertainty, flexibility in retirement, and why most entrepreneurs don’t actually earn less in retirement. You’ll also learn how the backdoor Roth IRA works for high-income earners and how to use creative tax strategies to offset Roth conversions.
If you’re rushing to make a last-minute IRA contribution before the tax deadline, this episode could change your decision. Make sure you understand the long-term consequences before chasing a short-term deduction!
You’ll learn:
The real difference between a Roth IRA and a Traditional IRA — and why the math isn’t the whole story
Why the “you’ll be in a lower tax bracket in retirement” argument often fails for entrepreneurs and investors
How paying taxes on the seed vs. the harvest dramatically impacts long-term wealth
Why a Roth IRA can be the most powerful asset to leave to your kids
How high-income earners can legally use the backdoor Roth IRA strategy
When a Traditional IRA might still make sense — and how to use both strategically
How to create offsetting tax strategies to fund a Roth without increasing your tax burden
Why contributing early (not just before the deadline) can significantly increase long-term returns
Get a comprehensive tax consultation with one of our Main Street tax lawyers that can build a tax strategy plan with an affordable consultation that will leave you speechless!!
Here’s the link - https://kkoslawyers.com/services/comprehensive-bus-tax-consult/?utm_source=buzzsprout&utm_medium=description-link&utm_campaign=main-street-business-podcast&utm_content=msbp609-traditional-vs-roth-ira
Main Street Business