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Subject:  Re: Roth vs Traditional Date:  1/24/2013  4:18 PM
Author:  pauleckler Number:  71303 of 88496

But by putting the bonds in traditional IRA, their interest gets taxed at ordinary income tax rates in retirement. Roth can be preferred as no further income tax is due.

However, considering origin of the bonds, the traditional IRA can be with tax deductible contributions (but not in the 33% income tax bracket) meaning more principal available for bond investing. The Roth is always after tax. If your IRA contributions are not deductible, Roth is the clear choice.

But if your IRA is a rollover from a 401k, Roth conversion may not be worth it unless you can manage it in lower tax brackets.
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