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URL:  http://boards.fool.com/i-cant-find-the-article-i-wanted-to-reply-to-so-10098417.aspx

Subject:  Re: Roth IRA Contriubtions & Conversions Date:  2/5/1998  11:54 AM
Author:  IngridB Number:  1635 of 75826

I can't find the article I wanted to reply to, so I'm sticking this in here, on its own. I think Pixy explained somewhere why all the money was withdrawn at once in the examples. It does make the explanation clearer, but I think it's too simplistic in a very important way.

If I want $5000 of income from a traditional IRA, I have to take out $5000 + $1400, if I'm in the 28% bracket, vs. $5000 from the Roth IRA. So, if you take into account the fact that withdrawals don't happen all at once, the traditional IRA starts to earn less as soon as withdrawals start.

This is the same mistake I was making on the contribution end (comparing $2000 traditional contribution to $2000 Roth contribution) for a long time.

I haven't run the numbers (too complicated *whine*), but I'm sure it would be significant if you plan to be retired for more than a couple of years. Am I still missing something?

Ingrid
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