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Santa Clarita financial professional Arif Halaby of Total Financial Solutions
Show host Arif Halaby and co-host Jeff Girard on KHTS AM-1220's "Total Financial Solutions Safer Money Hour."

Santa Clarita Financial Advisor: Paying Taxes On Your Roth IRA Now Can Benefit You Later

Some people may be discouraged from opening a Roth IRA when they learn their contributions are not tax-deductible, but paying taxes now can actually benefit you later, according to a Santa Clarita financial advisor.


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While everyone’s financial situation is different, Roth IRAs are one of the more popular choices when it comes to planning for retirement because of a number of unique benefits.

Santa Clarita financial advisor Arif Halaby of Total Financial Solutions

Show Host Arif M. Halaby

“Few of these retirement options on the market really are loved as much as the Roth IRA,” said Arif Halaby, a Certified Estate Planner and host of “Total Financial Solutions Safer Money Hour” on KHTS AM-1220. “And why is that? It’s because whether you’re 25, or even as old as 65, these retirement savings vehicles, they offer benefits and advantages.”

However, unlike the traditional IRA and 401(k) plans — which offer tax breaks as contributions are made, but are fully taxable when the time comes to access the funds later — paying taxes on Roth IRA contributions now to avoid being taxed later can be helpful in certain situations.

For example, an individual in their thirties or forties may already be getting a sizable tax break because they can claim their young children as dependants, or they can write off the interest on their mortgage payment.

In this case, it would probably make more sense to pay taxes on retirement contributions through a Roth IRA now rather than save them for later, when these other tax breaks will likely no longer be available.

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“(When it’s time to retire), your kids are grown, most of your house interest is paid off,” Halaby said. “So it’s a double whammy of potentially taxable consequences that the Roth IRA can eliminate.”

Not only can this help alleviate the financial burden of taxes during retirement, it can also help take some of the guesswork out of retirement planning because individuals will have a much better idea of what their after-tax retirement income could be someday.

“It gives you a predictable nature later of what the tax consequences will be — which are zero,” Halaby said. “It just doesn’t affect one thing or another, which is helpful to you because it can at least potentially predict what kind of income you’re going to expect. And that’s important in your planning, so one of the advantages later? Tax-free income. Don’t forget that.”

Ed. Note: This article is a KHTS Community Spotlight based on the latest “Total Financial Solutions Safer Money Hour” radio show on KHTS AM-1220.

Total Financial Solutions offers assistance with preparing for retirement and financial planning in Santa Clarita and the surrounding valleys. Santa Clarita financial advisor Arif M. Halaby, a Certified Estate Planner, and Total Financial Solutions staff work with people of all ages, helping them protect, grow and preserve their assets through an individualized approach. Halaby is also the host of “Total Financial Solutions Safer Money Hour” on KHTS AM-1220. Launched in 2004, the show offers listeners from Santa Clarita financial planning tips and guidance for dealing with today’s ever-changing financial needs.  

Total Financial Solutions, Inc.

24322 Main Street

Newhall, CA 91321

661-753-9683

800-990-7344

Do you have a news tip? Call us at (661) 298-1220, or drop us a line at community@hometownstation.com.

KHTS AM 1220 - Santa Clarita Radio

Santa Clarita Financial Advisor: Paying Taxes On Your Roth IRA Now Can Benefit You Later

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About Melissa Lampert-Abramovitch

Melissa Lampert-Abramovitch has been writing for KHTS since Feb. 2014. She currently writes “Community Spotlight” and feature stories, and coordinates all aspects of both the”KHTS Adopt a Pet” video feature series and “Top Things to Do in Santa Clarita.” She is the creator of “KHTS Adopt a Pet” and acted as News Editor from 2019-2020, as well as Features Director and Newsroom Manager from 2016-2018. A former Valley Publications Staff Writer, Melissa was a contributor to the Santa Clarita Gazette and Canyon Country Magazine from 2015-2016. She has published feature stories with Pet Me Magazine, The Pet Press, The Signal, COC's Cougar News, and KJAMS Radio.