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Subject:  Re: Roth IRA appropriate? Date:  12/27/2000  12:39 PM
Author:  TMFPixy Number:  26808 of 88831

Greetings, WSGrunt, and welcome. You asked:

I will be making more than the limit allowing me to deduct the contribution to a traditional IRA this year. I would like to know if, under these circumstances, a Roth IRA is the best way to go. Since I would have no deduction for a traditional IRA, doesn't a Roth make the most sense? At least I would get a tax benefit after I retire. Any other possibilities? I apologize if this has been asked a thousand times.

Award yourself a gold star for Foolish thinking. You are correct that when all you can make is a nondeductible contribution to an IRA, then that contribution should be to a Roth IRA, assuming you meet the AGI limits for your filing status to make such a contribution. Ultimately, you may take everything from a Roth IRA totally free of income taxes. In the traditional, the earnings would be taxed.

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