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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25242  
Subject: Re: Poll: At 55 should future contributions be I Date: 2/23/2014 1:31 PM
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You might want to take a close look at IRS Publication 590 on the irs.gov website.

Your first question should be is your IRA contribution tax deductible. In the 28% bracket, I suspect it is not. If it is not deductible, the Roth is definitely preferable.

A second question is do you still qualify for a Roth IRA contribution. If your income exceeds the limits you may not be allowed to contribute.

If the investments you put in the account are destined to grow as well as you hope they do, you probably want them in a Roth if possible so no further taxes are due.

As CABob points out, if the choice is between a tax deductible IRA and a Roth (which is after tax), the difference depends on when you have the lower income tax rate (assuming both accounts grow at the same annual rate of return).

Your third backup choice is to invest in a taxable account in the long term buy and hold strategy. Then you pay taxes only when you sell and then at capital gains rates. This is after tax money. So it is potentially better than a non-deductible IRA but not as good as a Roth.
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