To determine which IRA is right, Ellevest estimates your effective tax rate based upon your current salary and state of residence and compares that to our estimate of your tax rates in retirement. If your current estimated taxes are higher today, we recommend you contribute to a traditional IRA. If your current estimated taxes are lower today than in retirement, we recommend that you contribute to a Roth IRA. Our recommendations about what type of IRA to open are based solely on the information you have given us and our assumptions about future tax rates.
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