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Whether a person with a thirty year time to retirement is better off in a tradtional IRA or a Roth IRA is in my opinion a no brainer. The Roth wins by a landslide if we assume that Congress continues to allow earnings to compound with no taxes paid EVER.

Actually that's not really true. In a Roth IRA, you have already paid taxes on the money before you deposit it. This means that if your tax rate was 25%, you would have to earn $4000 in pre-tax money to have $3000 of after-tax money to put in your Roth. In a traditional IRA, you would only need $3000 in pre-tax money. Not that I'm arguing for the traditional as better than the Roth (it usually isn't), but I just want paint a clearer picture.

Adenovir
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