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http://boards.fool.com/ltltim-mystified-about-the-roth-hubbub-but-10140192.aspx
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| Subject: Re: Honest IRA/Roth Comparisons | Date: 3/28/1998 12:50 AM | |
| Author: Rayvt | Number: 2433 of 72248 | |
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<<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. Regards, Ray |
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