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I'm new to this forum, and I have read only a few dozen posts, so please pardon me if I'm bringing up old topics. Just let me know which msgs are applicable, and I'll go read them. There is really a lot of info here!!

I have read with interest about using the RP4 and other DTD strategies in an IRA. Since I am only eligible for the traditional IRA, my discussion is not aimed at the Roth IRA.

My question is, has anyone run the numbers to determine whether a traditional IRA is really better for a strategy like the RP4 or not? I fully understand that an IRA shelters you from taxes on the front end, but when you take the money out, you pay taxes at the same rate as ordinary income (don't you?). On the other hand, if you invest in the RP4 strategy, outside any shelter, and you make sure to go one day over 12 months on each yearly trade (to get long-term gains), you will pay taxes on only 20 percent of the capital gain. It would seem to me that this may offset the advantages of the IRA.


Thanks, Russ
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