Don't Worry About Taxes

If aggressive investments fit your investing needs, a retirement plan is a great place to house those assets, which normally might generate annual tax bills. When you begin receiving distributions at retirement age from a traditional IRA, you will pay normal income tax at your then marginal rate. Roth IRA distributions won't be taxed at all.

Many investors use Roth IRAs as opposed to traditional IRAs if they believe they will be in a high tax bracket after retirement. (You could find yourself in a high tax bracket after retirement if you no longer have dependent deductions, mortgage interest deductions, or other write-offs you enjoyed while working.) Our Roth IRA Analyzer can help you determine which IRA is right for you.

Any tax or legal information in this website is merely a summary of our understanding and interpretations of some of the current income tax regulations and is not exhaustive. Investors should consult their tax advisor or legal counsel for advice and information concerning their particular situation. Wells Fargo Funds Management, LLC, Wells Fargo Funds Distributor, LLC, nor any of their representatives may give legal or tax advice.