<prompt> Human: Im pretty ill informed on the subject of IRAs and Im trying to figure out why it might make sense put money into one. I know that traditional and roth IRAs are both taxed at some point, either now or later, so Im wondering where the benefit comes from? Aside from the small interest rate?Assistant: In a Traditional account, you avoid tax now. Dividends and capital gains accumulate over time. You take out distributions in retirement, taxed at your marginal tax rate. A Roth account is the opposite; you pay the tax nowwhen you contribute. Dividends and capital gains accumulate over time. You take distributions and pay no tax on them, including the earnings. The sidebar has more information to help you decide which is best for your situationEdit: Removed a sentence.Human: That was my understanding. However, Im trying to figure out how that marginal tax rate is determined after retirement? Im also trying to figure out why people would use a Roth IRA when theoretically you wouldnt be working when you retire? Isnt your tax rate going to be lower after you retire since you arent working?  <response>: You traditional IRA is your income. If you save money to withdraw 60kyr in retirement, thats what your tax rates will be based on any other taxable money you may be withdrawing 