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Ray wrote:

>>For new contributions:
1) To a tax-deducutable IRA (Few people have this option available. And those that do generally can't afford to contribute the money.) Don't pay taxes now. Pay taxes later.
2) To a non-deductable IRA. Pay taxes now. ALSO pay taxes later.
3) To a Roth. Pay taxes now. Maybe don't pay taxes later.

#1 isn't available to most of us. Of the two remaining options, #3 is the best.<<

We've had this arguement before, and neither of us is willing cede ground on this issue. (Primarily because I'm right and Ray's just stubborn <g>.)

Option #1 is, in fact, available to most of us. For 1998, full deductibility for married filers is allowed for incomes up to $50,000, and that rises to $80,000 by 2007. For single filers in 1998, full deductibility is allowed for incomes up to $30,000 (with partial deductibility to $40,000), and the fully deductible income level rises to $50,000 by 2007.

The average household income in this country is in the low $30,000 range. (Sorry, I don't have a precise figure, but it's around 31-32K.) To argue that this option isn't open (or affordable) for most of us is--not correct, just stubborn.
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