Margaret is 25, single, and makes $35,000 a year. Margaret does not have access to an employer-sponsored retirement plan, but she really wants to start saving for retirement. She can contribute $5,100 of pretax money to a traditional IRA, or she can contribute $4,335 of after-tax money to a Roth IRA. The $765 difference represents the tax that Margaret has to pay. Assume Margaret continues to make this same annual contribution for 30 years and earns 10% on her investment.