4. Roth IRA distributions

You’ve probably heard of qualified distributions, right? Well, then it comes to a Roth IRA (Roth individual retirement account), qualified distributions are not taxed. That’s the money you receive after the age of 59 ½, typically. 

Here’s another benefit of Roth IRA, especially for those who think they’ll be in a higher tax bracket during retirement. Contributions made to this type of account are taxed when you make deposits, not when you withdraw. Traditional IRAs work in the opposite way. 

The trick is to figure out when and how you want to pay your taxes. It’s all about the long game!