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coolnewbie: "Hi all,"

Hello and welcome.

"I have a question regarding opening an IRA vs. a Roth IRA. After working on my taxes I found that I will be owing Uncle Sam $429."

$429 in total federal income taxes or $429 more than the amount previously withheld or paid quarterly?

"Out of curiosity I created a scenario where I contribute $1000 for a traditional IRA for DW & I."

You cannot create a single IRA for both you and your DW. You can create your own IRA (subject to legal requirements), or your DW can create an IRA for herself.

"This will save me about $650 in taxes at this time."

That number seems suspect for a $1000 deductible, traditional IRA. Absent SS, I do not believe federal and state marginal rates rise that high.

"The question that pops up in my mind is should I open a traditional IRA to save $650 in taxes at this time, or should I open a Roth IRA to enjoy the tax-free earnings? What would you do? And why would you do it?"

Are you eligible to open a Roth IRA?

Sorry, however, I did not really answer your question.

Regards, JAFO
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