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Subject:  Re: Roth or regular IRA Date:  3/31/1999  1:55 PM
Author:  Wavelength Number:  9591 of 78168

Well, in that tax bracket, it's likely that you can deduct your IRA contributions, so I'd go with the regular IRA for a while. Then, when you start making more money, convert that to a Roth.
That way, you get tax deductions now, and will convert it later when you make more money.

Funny, but I would give exactly the opposite advice, for the same reasons! The biggest case for the Roth can be made if you expect to be in a higher tax bracket in retirement than you are in currently. You pay lower taxes now (and end up with a higher total net investment) than you would if you withdraw a regular IRA in the future. The same goes for conversion. Why use the deduction now, which saves you only 15%, only to pay more taxes (on the contribution and its earnings) when you convert in the future and are in a higher tax bracket?