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Author: PMcMullenCT Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75379  
Subject: Re: NEW ROTH/TRADITIONAL IRA DILLEMA! Date: 1/10/2001 6:44 PM
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>I am married and our AGI is 110k a year

Your income is too high to roll your Traditional IRA to a Roth.

>I am feeling immense pressure from him as to open
>up a new account, because he says that the taxes
>that I will pay in the future for the traditional
>IRA will be outrageous. (according to him.)

If you're a long way from retirement, and likely to have a good nest egg, and high income when you get there, the Roth is usually a better option. Since you earn too much to deduct Traditional IRA contributions, it's a no brainer, contribute that money to a new Roth IRA.

>But, I feel like the money albeit small in my
>traditional account, is better than starting over
>at $0.00 with a Roth, and would rather contribute
>$ toward the IRA account and my 401k.

It's not either-or. You don't sacrifice the money in your Traditional IRA to open a new Roth. That money will continue to grow, and will be taxes as income when withdrawn. By contributing to a separate Roth IRA
as well, you'll have an additional tax free source of income. It sounds like you should listen to your broker.

If your employer offers a match on your 401K, your should first contribute to that amount, but ideally do both.


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