I’m starting to question if putting money into ROTH IRAs is really such a good idea for those who don’t expect to have much retirement income anyway. My question is what are they actually saving on taxes that makes it worth complying with all the IRA rules and limitations ? If they will be having little retirement income then they anyway won’t be taxed on the long term capital gains that come from taking money out of their retirement account. Why bother setting it up as a ROTH IRA ?
I realize that there are other considerations like the Savers Credit if they have little enough income to qualify now and it’s possible that they will remove so much from their retirement account that it will be taxed at the 15% or 20% rate etc. My main question is that for a typical married couple who does not expect to have more than $83,350 yearly retirement income (indexed for inflation) so their IRA would otherwise probably be non taxable long term capital gains why is a ROTH IRA such a good idea for them and so frequently recommended on tax planning sites?
The only thing I can think of is that even non taxed capital gains are still considered income for the purpose of increasing AGI so it can possibly cause some of their social security benefits to be taxable. It can also cause problems for other income based government programs like SNAP. What else am I missing?