Tax-Exempt vs. Tax-Deferred

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FrankCFA

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Since everyone will go to retire eventually, it’s better to choose the tax-deferred account to enjoy the lower marginal rate when retire instead of chooseing tax-exempt account which pays taxes today.
Is above statement correct? Thanks.
 
How can you be sure that marginal tax rates will be lower when (and if) you retire?
 
And will you be in the same income bracket at retirement? I’m currently in the 10% income bracket, since I have a menial job and four kids. But I plan to be in the 43.4% bracket someday. So should I pay my taxes today at 10% or later at 43.4%?
 
I would think as follows:
If taxes are expected to be lower in future, use tax deferred account to pay lower taxes in future or;
If taxes are expected to rise, then pay now and put your money in tax exempt account, so you don’t have to pay at higher rates in future.
Both scenarios are in future (think retirement) !
Don’t think we need to make it more complicated than it is.
 
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