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The TMF Investment Tax Guide frequently refers to a hypothetical tax rate on IRA distributions of 15%. In fact, this rate is used in comparing the relative advantages of a traditional IRA to a Roth IRA. A 15% tax rate assumes annual distributions of less than $45,000, and ignores possible state taxes. In light of prospective annual investment returns as high as 24.6% over extended periods, mandatory distributions, and long-term shrinkage in the value of the dollar due to inflation, do you feel it is prudent to assume such a low level of income from the IRA when making the Roth decision?

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