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I'm with you, drbear. We're getting to the same point via two different approaches.

Anyway. . .
Continuing with the analysis, assuming an investor can invest the money such that it triples by retirement, whereupon he withdraws it.

Roth: 2000 * 3 = 6000 after-tax

Conventional: 2000 * 3 = 6000, less 15% tax = 5100
560 * 3 = 1680, less tax on capital gain, = 1520 after-tax

Total in conventional account is $6620 compared to $6000 in Roth.

Of course, you can make any assumptions you want about the compounding of the investment. The Roth will always be inferior unless your tax rate is higher at retirement than today.

I cannot undertsand why so many people are signing up for Roths and needlessly donating their money to the Federal treasury!
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