Skip to main content
No. of Recommendations: 0

<<Everything I've seen says that you should convert if your income will be higher after retirement. That makes sense, but it doesn't seem to say enough.

I am 25, so I'm in pretty much the same situation as the original poster. My understanding is that Roth-IRAs grow tax free, but regular IRAs grow tax deferred, and the original contributions are taxed now for Roth-IRA and non-deductible regular IRA, later for regular deductible. So, in addition to being better if you'll be taxed more during retirement than you are now, Roth-IRA beats non-deductible IRA hands-down, and it beats deductible IRA if the income on the IRA is going to be significant compared to the contributions (= long time until retirement).

But I haven't seen anyone explain things in this way, so I'm concerned that I'm missing something.>>

See the posts of 2/1/98 in this folder, subject "Roth Contributions and Conversions." They will help somewhat to explain things. The decisions are not "no brainers" in this area.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.