"Tax Me Now" Concept: This approach involves paying taxes on your income before you invest it in a retirement account. Once the after-tax money is invested, both the initial investment and the earnings it generates grow tax-free. When you withdraw the money in retirement, you don't have to pay any additional taxes on it. This concept is appealing if you anticipate higher tax rates in the future or prefer the certainty of no taxes on withdrawals.

"Tax Me Later" Concept: Here, you invest money in a retirement account before paying income tax on it. This means your contributions reduce your current taxable income, providing a tax benefit in the present. The money, including any earnings or gains, grows tax-deferred within the account. Taxes are paid later, when you withdraw the funds in retirement. This concept is advantageous if you expect to be in a lower tax bracket during retirement, as you'll potentially pay less in taxes on the withdrawn amount compared to what you would have paid during your working years.