Since you pay a higher tax rate when you make more income, “spreading out” income via tax-deferred accounts (Traditional 401ks/IRAs) can drastically boost the amount of money you save over your lifetime.

On the other hand, deferring too much tax can force one to withdraw too much money later on, triggering those higher tax rates that were undesirable in the first place.

SmarterPath can figure out the best timing and strategy for when to use these accounts.