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Author: Einecbn Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75384  
Subject: Re: Which IRA for a 20-something? Date: 7/2/1998 7:18 PM
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http://personal71.fidelity.com/retirement/buildassets/

Fidelity site has good info and guidelines about IRA's and deciding between them. Also check out the Roth IRA vs. Traditional IRA link at the bottom of that page. There are graphs which show that you will end up with more money in a Roth IRA followed by a deductible traditional IRA and then a traditional non-deductible IRA. Traditional IRA's are deductible if your adjusted gross income is equal to or less than $30,000 (and 50K for joint filing) in 1998 and is partially deductible in the "phase out" AGI ranges above 30K. Over the next few years, the deduction limits will also be increasing. But ultimately, your money grows larger in a Roth IRA than in a deductible traditional IRA; however, there are income limits with Roth contributions.

I also find this article from Jan 19, 1998 in the SF Chronicle ("How to decide on a Roth IRA") very helpful-

http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/1998/01/19/BU34891.DTL

I'm 25 and don't qualify for a deductible IRA's, so I have converted my traditional IRA to a Roth and opened up a regular Roth. Although I only have 2 years of contributions to these Roths ($4000), it's almost too good to be true to me that when I withdraw this money for a house, for B-chool or in retirement, gains will be TAX-FREE!
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