#roth ira

SECURE 2.0 answered the standing objection to 529s: unused money can move to the beneficiary's Roth IRA. But the account has to be 15 years old, and the clock starts when you open it rather than when you fund it. Which makes the decision that matters a calendar decision, not a contribution one.

Contribute to a traditional IRA, convert to Roth, done. That works cleanly only if your other traditional IRA balances are empty, and the balance that decides it is measured on December 31, not on the day you convert. Which means a rollover in November can retroactively tax a conversion you made in March.

The whole Roth vs Traditional debate reduces to one question: is your tax rate higher now or in retirement? The math is symmetric. The decision is a bet on future tax rates. For most people under 40 who aren't high earners, Roth is the default that ages well.