Withdrawal Contribution TAX TAX • Potentially lower your current taxable income. • May mean more money in your pocket today. • Any earnings grow tax deferred. Pretax 1 If your tax bracket will be lower in retirement, you may pay less in taxes at withdrawal. Pay taxes on contributions and earnings as ordinary income. TAX TAX TAX Roth 2 If your tax bracket will be higher in retirement, you may save by paying taxes now. • Pay taxes on contributions now. • Any earnings grow tax deferred. Earnings are federal tax-free with a qualified distribution. 3 Visit learningfromempower.com to access helpful information, videos, calculators, and more Pretax or Roth: Which road to take? Before you determine which road or combination of roads may be right for you, you’ll need to consider a few important factors, including when you want to pay taxes. Let’s take a closer look.