No. of Recommendations: 1
Author: EditorialWe Date: 6/2/00 10:55 AM Number: 22320

I am unfamiliar with the CA tax code, but the CT income tax is based on your 1040 AGI, so I believe state taxes would be adversely affected.

If you save diligently for retirement, your $5500 will ultimately be a small part of your contributions, but will likely be a somewhat larger portion of your nest egg due the longer time compounding. I don't feel qualified to give you a yes or no answer - you will have to run your own scenarios to decide which is better for you.

Sorry for the nonanswer. If you continue to have a 401(k), you should continue to max it out and contribute to future Roth IRAs as much as you can, since you will not likely be able to take the deduction for a standard IRA.
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