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Greetings, Phyburoptik, and welcome. You wrote:

<<This year I started a Roth IRA thinking the contribution would be tax deductable. Now that tax season is here, I've read that it isn't. So, now I'm trying to figure out what the point of having a Roth IRA is. The only difference I see between a Roth IRA and say...a regular mutual fund, are just more restrictions on the IRA. I know I must be missing something somewhere. I've read several articles throughout your site, and your message board.....I just don't see an advantage. I would greatly appreciate any clarifcation that you can give me. >>

The advantage is tax deferred growth coupled with ultimate tax-free withdrawal. It stands head and shoulders over a nondeductible traditional IRA and taxable accounts. For details, see my analysis on this board at http://boards.fool.com/Registered/Message.asp?id=1040013000441002&sort=postdate and the IRA discussion in my Foolish Retirement Planner available at http://www.fool.com/retirement .

Regards…..Pixy

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