Tax rate differences (rate when IRA funds are earns and when IRA funds are withdrawn) are the key. We may have ideas, but no one really knows what the marginal tax rates will be 30 years out. That said, the Roth has as a primary basis no tax on its IRA funds. Congress can change that next week should they return to Washington. Such a change while very unlikely, possible.

Despite some of the political rhetoric, the actual portion of GDP the federal government takes in is low compared to history. (Keep in mind a 90% marginal rate applied to the last dollar earned with a zillion deductions can result in actual tax dollars being almost any percentage of total income.)

My personal feeling is over all federal tax spending will increase over the next 30 years. Just one example - in the 50's and 60's the Feds spent on the Interstate system. Little has been spent on maintenance and it is getting old. Last year a bridge in Minneapolis fell. More of that will happen and Congress will decide to do something. I do not know if marginal rates will increase, deductions will decrease or new taxes will be added. But I do believe the portion of the GDP going to the government will increase. Therefore I am of the opinion putting some of your IRA funds into a Roth is a type of diversification worth consideration.

Gordon
Atlanta