Maybe, maybe not. You got to defer taxes for all those years you contributed and until you retire. Usually you are in a lower tax bracket after retirement when you start paying taxes on your withdrawals.
I’m going to look into this business about not having to take a distribution if I haven’t retired as I mention in an above comment.
You can pass retirement account to heirs upon your death tax free. I’d like to do that if possible.
“You got to defer taxes for all those years you contributed and until you retire. Usually you are in a lower tax bracket after retirement when you start paying taxes on your withdrawals.”
1. You get no tax breaks you would ordinarily get: capital gains, depreciation, etc.. And turns it all into ordinary income that is taxed at the highest rates when you withdraw it, instead of at the lowest tax rates.
2. You face government control and limits as to what investments you are allowed to choose, when you have access to your own money, penalties for withdraw, etc.
3. The government is your partner and shares your gains.
4. The balance is not yours. Part of it belongs to the government.
5. You have to plan on being poorer in retirement to be in a lower tax bracket.
That’s a start on listing why an IRA is a bad deal.
“You can pass retirement account to heirs upon your death tax free.”
Not true for regular IRA. Your heirs will pay taxes on amounts withdrawn and will be subject to minimum required distribution.
I inherited my mother’s IRA in 2010. Because she was over 70-1/2 and was taking her RMD, I must also take that distribution even though I was only 60 when she died. I moved the money to my own funds and they send me a check once a year.