A Tax question for the experts re. Traditional vs Roth vs Brokerage

I just realized today that the LT Capital gains rate from a brokerage account is 0% if your MAGI is less than $98k if you file jointly. Most people I see on here living on <$100k a year during FIRE, so should be able to be close to tax free withdrawals, right? At that point, is there really any advantages to either of the other kind of retirement accounts (traditional or Roth)? I realize traditional gives you a deduction now, but it comes with so many strings attached such as age restrictions, RMDs, and is still treated as ordinary income on withdrawal. I also understand Roth is tax free growth, but also has its own strings attached.

I have ~$1M in each traditional and Roth, but not much brokerage. Looking to retire ~50 years old and wondering if I should focus 100% on beefing up that brokerage.

What am I missing about the brokerage account? It seems too good to be true to get that kind of favorable tax treatment and it’s completely flexible in terms of age. Thanks all in advance!

Posted Jun 3, 2026, 1:27 PM UTC

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