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Financial Planning / Tax Strategies


Subject:  Re: Yet Another Roth IRA Question Date:  5/8/1998  11:02 PM
Author:  Kno1ok Number:  3831 of 128043

My current income puts me above the limit for deductible contributions to a Traditional IRA. Any
money I contribute to a Trad IRA will be taxed at X% now (as I earn it), and taxed again at Y%
later (when I withdraw it). Correct?

There is a small flaw in this statement. The money you contributed that was nondeductible will not be taxed again when you withdraw it(under current laws, anyway). Only the appreciation will be taxed on withdrawal. I don't believe this changes the validity of your conclusions, however.
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