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Updated over 3 years ago,
Roth Vs. Traditional IRA for a RE Investor (Passive Income)
While currently having a post tax Roth IRA and Pre Tax 403(b), I've always been more keen on the Roth and contribute more to my Roth (a lot more). But, the more I'm learning about taxes and brackets in retirement the more I start to wonder if Roth is the way to go. As a Real Estate Investor, I anticipate a large chunk of my retirement will be funded by income from rental properties. The IRS sees this as passive income right? So wouldn't my earned income be quite low if it's just a social security and pension check each month? Does the IRS view SS and Pension payments as earned income that is taxable?
I'm in a pretty low bracket right now so I'm too concerned, but I am SUPER interested in what folks on the forums hve to say!
Thanks for any input!