I am trying to figure out some things about roth and traditional IRA's. I know that a traditional IRA is tax deductible. When you draw out of a traditional IRA, are you taxed at the long term capital gains rate for selling stock or at your current income tax rate? If it is your current income tax rate, aren't you not paying any taxes if you are retired since you are not generating any more income. Also, I have been told that I should convert to a Roth IRA since I am young(24) and just started my IRA last year with the maximum contribution(2,000). My conversion costs should be pretty low since I made about $300 in a mutual fund(big mistake!) on the 2,000 so I will be taxed on the 2,300. When I put this info. into the calculator for "Should I convert to Roth IRA?, I got a better return from the traditional. My income is around 32,000 so I am in a lower tax bracket. Is this why the calculator is giving me this result. Any help would be greatly appreciated.