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Subject:  Roth VS Traditional Date:  7/8/2004  3:28 AM
Author:  OneLostFool Number:  41505 of 88783

I'm planning on re-starting my contributions to an IRA this year. I missed the deadline for my company's 401K, so this seems the best route for me for now.

I'm curious, though, about which type to open. At my age and income, I think most financial advisors would recommend a Roth, since I'm still (relatively) young and my income will be more in the future than at present. However, a former IRS employee and friend of the family made a comment that I keep dwelling on. She said that she always recommends that people go for the Traditional, because it will be some time before I can retire, and by then the tax laws may have changed. (She cites the fact that CC interest used to be tax deductible as well-plus other examples I can't remember right now, and that the urge to tax any and every income seems to be on the rise.) She thinks it's always better to take the tax break you know you will get right now over the one you may get in the future. This is somewhat like the risk you take whenever you invest anywhere, but I must admit she has a point.

I'm curious what the Fools think. Any comments?
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