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URL:  http://boards.fool.com/ltltltltlt-lets-futher-say-that-in-10-10840095.aspx

Subject:  Re: not eligible for roth Date:  5/6/1999  5:14 PM
Author:  jocave Number:  10381 of 75616

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Let's futher say that in 10 years or so, I am no longer able to contribute to a Roth IRA due to my income. (Dare to dream!!!) Then what? Are all my IRA options used up and/or am I stuck with regular taxable accounts?
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Everyone is allowed to make a $2000 traditional IRA contribution. As your income rises, you lose the ability to take a deduction on your taxes for that contribution.

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Also, unrelated question, the Roth vs. Traditional IRA calculators use tax rate at retirement as a parameter. How the heck do I know what my tax rate will be at retirement??
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You guess. Given that you're 26 and 33.5 years away from withdrawls, it's a big guess. Lots can change over three decades.

As a rough guide, there are three basic retirement scenarios-
1) Retire with an income less than that you made while working.
2) Retire with an income equal to what you made while working
3) Retire with an income greater than while you were working.

Assuming you're in the 28% bracket while working, you could use 15%, 28%, and 36% for the three scenarios above.

A hint- if, at 26, you choose scenario 1, I'd suggest you aim a little higher.
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