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Ray wrote:
<<There are two independent considerations to a Roth, and it's easy to conflate them and to erroneously elide them together: (1)conversion and (2) new contributions.>>

For someone who has the choice between making contribution to a ROTH and a deductible IRA the two considerations are closely related and in many cases are identical. It is almost always irrational for such a person to chose to make new contributions to the ROTH and not convert at least part of any existing IRA.

This is because your marginal tax rate for the deduction is the same as your marginal tax rate for the extra income resulting from the conversion. Rationally you should convert to the ROTH until either you move into a higher tax bracket or run out of money outside the IRA to pay the taxes.

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