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Here's the table comparison using my rational of
fully funding both types of IRA and investing the
tax savings of the Traditional IRA.  Since the tax
savings are invested in a non-IRA account, you will
be paying taxes on the gain.  To break even with
the Traditional IRA, your tax rate would have to
drop to %21 at the time of withdrawal.


Traditional IRA     +   Non-IRA
capital:     $2     |  $1
Double #1:   $4     |  $1.50 ($2 - Tax: $0.50)
Double #2:   $8     |  $2.25 ($3 - Tax: $0.75)
Double #3:  $16     |  $3.37 ($4.50 - Tax: $1.13)

Total: $11.36
(IRA $16 less $8 tax + $3.36 of Non-IRA balance)

Roth IRA (Uncle Sam gets the $1 of tax)
capital:     $2
Double #1:   $4
Double #2:   $8
Double #3:  $16

Total:      $16 (tax free)
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