Phil Cannella has long touted the benefits of Roth IRA vs Traditional IRAs. The concept is that while you are in your working years you are most likely in a higher tax bracket than you will be once you retire, and through your IRA contributions you have been able to grow your investments tax deferred. Tax-deferral is a wonderful thing and enables us to grow our investments for years and years without taxes being extracted annually. However, by the time you turn 70 ½ Required Minimum Distributions (or RMDs) must be made and a tax payment must begin. Phil Cannella makes the point that you may not be in a lower tax bracket when you retire and you could end up paying more in taxes later. As government debt grows astronomically, the one and only thing the government can do to rein the debt is raise taxes. If the 15% tax bracket now becomes the 25% bracket and the 25% bracket now becomes the 40% bracket you may end up owing a greater tax bill later on.