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I do not have previously deducted contributions to a traditional IRA.

I had previously contributed a deductible $4000 into a SEP IRA several years ago that I qualified for for one year only (Is that part of the total IRA balance?).

The rest of my tax-shelted savings are in Roth IRAs, 403(b), and 401(k) (I assume these are not part of the total IRA balance).

We already contribute the maximum to our 401(k)s.

With regard to our expected income taxes, our tax rate is high now, and I expect it will be equally high in retirement.

One of the attraction for me, at least in theory, was to diversify my tax-deferred savings, because if all holds, the contributions and growth in the roth IRA will not be taxed ever again, whereas withdrawals from other retirement savings would be taxed at a high income tax rate (which might be exorbitantly high many years from now); long-term capital gains in taxable accounts years down the line might also be taxed at a significant rate. I am seeing how this added strategy would be a headache of paperwork (can I keep documentation for this for 30-50 years?), and very little benefit might result depending on the law for rolling over to a Roth IRA in 2010, much less the laws regarding tax free withdrawals from a Roth IRA 30+ years from now. Furthermore, the portion of my savings in the Roth IRA might be dwarfed by my other taxable and tax-deferred accounts that adding this strategy is inconsequential in the long run. I am seeing perhaps it is not for me, but for others, maybe.



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