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Subject:  Roth Beware-Substantial Savings Date:  1/9/1998  6:12 PM
Author:  rickisme Number:  1176 of 88498

I have written before about my concerns with Roth and the possible effects on future wealth IF we go to a flat tax in the future or something like a flat tax with lower rates. Has anyone done any number crunching on this? I don't think it is unreasonable to assume that we may have a flat tax or even a flatter tax in the future. I think it is more likely than not. Now, I did some quick calculations by hand and made some assumptions and unless I punched the wrong buttons on my hand calculator, I was amazed at how much can be lost in wealth by choosing Roth vs Regular IRA, that is IF there is a flat tax in the future lower than the current rate (in my example). I need to go over my assumptions and calculations - at first glance it seems that I might have made a mistake somewhere given the SUBSTANTIAL savings one could obtain by remaining in a regular IRA vs Roth given the assumption of a future tax reduction and I apologize in advance for any such mistakes I may have made. If anyone is interested, when I finish my math recalculations, I'd be happy to post. Oh well, have to run, my teenage daughter needs to use the phone.

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