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| Subject: Re: Roth or regular IRA | Date: 4/4/1999 12:24 AM | |
| Author: Rayvt | Number: 9666 of 72265 | |
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<<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.>> Maybe, maybe not. Probably not. The point has been made (www.ricedelman.com and www.fairmark.com) that a Roth is *bigger* than a regular IRA. When you put $2000 in a regular, it's $2000. When you put $2000 in a Roth, it's equivalent to putting in $2777 (28% bracket) or $2353 (15% bracket). In both cases, you have $2000 to invest. But when you withdraw the money, some (28%) of the withdrawal from the ordinary IRA gets siphoned off to taxes, but none of the ROTH withdrawal does. In effect, you can put a larger amount of money into a ROTH than a regular IRA. Ray |
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