The marginal rate today only applies to contributions, while the future effective rate is on contributions + earnings. Not really.Had you not made the deductible IRA/401k contribution, you would have earned currently taxable returns on that money. So you also effectively get a reduction in your taxes for the earnings in the account. And that is also at your marginal rate.I've said it before, but it bears repeating. The traditional vs. Roth analysis comes down to a prediction about your personal future tax rate as compared to your current tax rate. Lower rates in the future favor the traditional. Higher rates in the future favor the Roth.--Peter
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