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Subject:  Re: RE: What Should I do Date:  7/27/2000  8:50 AM
Author:  rhecker Number:  23706 of 88532

So as a teacher I would be in the 28% bracket, putting in funds, but I assume when I retire that there is no way I will be in the 15% bracket. So the roth would be my better choice?

There is a nice article hidden somewhere on the TMF site which give examples of a few different scenerios for investing with a Roth or a traditional. It also accounts for the possibility of investing your tax-deferred savings if you go for the traditional IRA. Maybe TMF Pixy can point you to it, since I think he's the one who wrote it. Otherwise, you can work out some scenerios on your own.

I believe what you will find is that if you compare the Roth and the traditional (assuming you invest your tax-deferred savings in a taxable account), they result in equal gains when you maintain the same tax rate. Then if your tax rate goes up, the Roth wins - and if it goes down, the traditional wins.

You also have to consider what all of your sources of income will be when you retire. If you have something like a 403B along with a Roth, then maybe you would be withdrawing 15k from each every year- leaving you in the 15% tax bracket since the Roth isn't taxed. If your 403B plan matches any part of your contributions, then you want to at least make sure to take advantage of this "free money" no matter what.
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