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Greetings, BF, and welcome. You wrote:

<<Is there something I'm missing here?
If you compare a Roth to a standard IRA over time, starting with same amount of money to invest, doesn't it only make sense to open a Roth if you're in a lower tax bracket now than when you are retired? Doesn't seem like it would be a common scenario.

I can see why the government would like to get their hands on my money today. The investment companies would probably like me to make a few transfers as well.>>

I see you have reopened a discussion that went on ad nauseum on this and the Tax Strategies board last fall. Essentially, as others have noted, much depends on your assumptions and the dollar amounts invested. You can see my full discussion of most of the issues involved in an earlier post at . I think you'll find that discussion of some help in resolving this issue in your mind.

To me, when the choice is strictly between a nondeductible traditional or Roth IRA, I'll take the Roth every time. If I can afford to make a full after-tax contribution of $2K to a Roth versus $2K to a deductible traditional IRA, I will again take the Roth. Why? It's explained in the reference. I don't see my tax rate dropping in retirement. Indeed, if anything, I think tax rates will go up from where they are today. I also don't think a future Congress will renege on existing Roth IRAs by imposing a tax on the earnings. Instead, I believe they will simply ban any future particpation while leaving existing accounts intact. But that's my bet and my assumptions. You have to make yours.

Pixy's Rule: Ya makes your choices, and ya lives with the results.

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