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Subject:  Re: Honest IRA/Roth Comparisons Date:  3/28/1998  12:50 AM
Author:  Rayvt Number:  2433 of 88502

<<I'm mystified about the Roth hubbub, but maybe I'm just missing the boat.
When I try to compare a traditional IRA to a Roth, the Roth ALWAYS comes out behind. ... So, other than inheritance differences, why should I even consider a Roth?>>

You _are_ missing the boat. Most people who can afford to contribute to an IRA cannot make deductible contributions. It's that simple. If you are covered by any kind of a retirement account by an employer, you can't deduct the money you put into your IRA. And if you are making so much money that you can afford to put away $2000 (or $4000) per year, your skills are probably in such demand that employers offer benefits like a retirement plan.

We mostly dismiss a deductible IRA for pretty much the same reason we don't discuss the 10% long term capital gains rate. The only people it applies to are those people for whom it doesn't matter, because they can't afford to take advantage of it.

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