No. of Recommendations: 0
Maybe I'm missing a few points on this isue, but I see the Roth IRA as a hands down winner. Reasons:

A. Self-directed - I think I can do better on returns than my 401(k) options.

B. Tax Free - I'm 39 and plan to hold it at least 21years.

C. Distributions don't add to taxable income - As, I believe it was Henry said, I plan to retire at the same income level as I currently have. The Roth IRA has no post retirement effect on other funds. (should be included in spreadsheets)

D. No min. distribution requirements - If, hopefully, I reach 70 1/2 I'm not required to to take money out. I have a friend & co-worker who is 73. Yes he's still working. But IRA distributions are a sour subject with him. Better to talk stocks or computers.

A final point, as TMF Pixly pointed out, I don't think congress will leave this as an option for very long. I'm, as the saying goes, goin' get it while I can.
Oh, I received a "Special Report" on Tax Relief '97 from T. Rowe Price Funds. Yeah, I know they sell IRA's, but I think they give great investment information too. They basically say Roth IRA over 401(k).

There was a discussion on 401(k) max. contributions. For whatever reason, our plan limits us to 16%. We also have an ESOP plan. That may be the reason. And as I said, The company contributes 2.3% regardless. The point is, everyone should check thier own plans. I'm part of the hourly work force. Some of the supervisor have had limit problems due to an "averaging system". Details were sketchy. They were told they could contribute no more than the average of everyone at thier pay level. Over contributions were returned the following year. One year I know they were limited to about $5500,00. Check your plan.
Happy Investing,
DD
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