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Author: jcarey52 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77406  
Subject: 401K vs. Roth IRA Date: 12/5/2001 8:33 PM
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I am trying to decide whether to invest in my company's 401K or a Roth IRA. My company matches half of the first 6% that I invest in the 401K so it is a given that 6% of my income will go into my 401K. My quandry is where to invest money over and above the 6%. With the Roth IRA I get no up-front tax break but get no taxes on distributions at the end. With my 401K I will get the up from tax break (like a traditional IRA) but distributions at the end will be taxed as ordinary
income. I am 45 and will start taking distributions at 60. Running this through a formula tells me that the Roth IRA will actually provide my with more distributions when all is said and done. However, I have a concern that at some time in the next 15 years that the federal government will find a way to tax Roth IRA's thereby removing the advantage of the accounts? What do you think I should do?
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