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Subject:  Re: Roth Beware-Substantial Savings Date:  1/13/1998  10:52 PM
Author:  TMFPixy Number:  1282 of 90529


<<Results: If and only if one pays taxes in the 28% bracket for 30 years and upon retirement only pays 15%, the savings under the regular IRA are substantial; however, if the tax bracket upon retirement is the same or higher>>

I didn't check your math, but it looks o.k. from the explanation. Just two comments: First, there's really nothing new or shocking with your conclusion. It's been published in several articles and analyses already. Second, you don't mention the mandatory withdrawal from the regular IRA starting at age 70 ½. It must be taken and will be taxed. The result here would be to push good ole Fanny into a higher bracket probably and would have an impact on her remaining stash.

Overall, though, it's a good effort. I wish you luck with the article. And BTW, you should really take the time to verify the break points for marginal brackets before your publish. Anticipate and forestall the criticisms before they occur. J


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