Roth vs Traditional IRA: The Math Most People Never Run

Did you choose the wrong type of IRA — without even realizing it? The difference between a Roth IRA and a Traditional IRA isn’t just about taxes today. It can directly impact how much you actually keep in retirement, not just what you earn along the way. In this episode of Enlighten to Achieve, we break down: How Roth IRAs and Traditional IRAs really work When tax-free growth helps — and when it doesn’t Why “Roth is always better” is often an oversimplification How age, income, and tax brackets change the math Required Minimum Distributions (RMDs) and why they matter The power of tax deferral and compounding over time Why control and emotions can cloud good decision-making A real numbers example showing how two different IRAs can end with the same result 💡 Key takeaway: There is no universal “best” IRA. The right strategy depends on where you are in your career, your current tax situation, and what you believe taxes may look like in the future. This conversation walks through the mechanics, the math, and the mindset behind choosing between a Roth and Traditional IRA — and why using both strategically is often overlooked. 📌 Important reminder: This discussion is for educational purposes only. Examples are hypothetical and simplified. Individual results vary, tax laws change, and past performance does not guarantee future results. If you want help running the numbers for your specific situation, feel free to reach out — we’re happy to walk through it with you. Chapters: 00:00 Introduction 00:27 What is a Roth IRA? 03:31 What is A Traditional IRA? 05:48 Tax Basis in Your IRA? 07:28 Why Some Believe a Roth is a No Brainer 09:00 Does a Roth Actually Make More? 11:10 A Smarter Way to Consider When Choosing