CK, There are a couple of ways to look at it..........A Roth contribution is made with after tax money and does not benefit your tax liability for your 60K paycheck. However, the principle you contribute and the earnings are not taxed when withdrawn provided you are 59 & 1/2 and have had the account open for 5 years. Traditional IRA contributions are made with pre-tax contributions and lowers your tax liability on your 60K i.e., if you contribute $3000 to a traditional IRA this year you will be taxed on 57K. But, Uncle Sam is not one to be denied forever! When you are old and grey and begin to withdraw a traditional IRA, the withdrawal is taxed as income.If I were 29 years old and qualified for a Roth (hopefully in the future you will make too much money to qualify)and had about 30 years to accumulate tax free forever earnings I would go for the Roth! Imagine starting your retirement with maybe $750,000 tax free money! That is if you invest Foolishly for the next 30 years.For a full discussion of IRAs go to: http://www.fool.com/money/allaboutiras/allaboutiras03.htmGood Luck,campcity
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