Ask an Advisor: Should I Pay Taxes on My IRA Now or Wait Until Retirement?

Tax-free inheritance: Your heirs will pay taxes on withdrawals from inherited traditional IRAs . Heirs taking withdrawals from inherited Roth IRAs won’t pay any income taxes as long as the five-year rule has been met.Reduced taxable income: Traditional IRA withdrawals are subject to regular income taxes, increasing your taxable income. Roth IRA withdrawals are not taxable and not included in taxable income. Lower taxable income can keep you in a lower tax bracket. As an added bonus, it can help you avoid pa ...