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Good Morning Fellow Fools,
I am pondering whether or not to start my IRA as a Roth or regular IRA. I know that all of my withdrawls in the future would be tax free, but I am losing the valuable tax deduction now. I am 30 years old and this scenario has 30 years to develop. If I take the deduction now and pay the tax later I would only be paying 15% tax in the future (all things remaining the same as now)and getting a 28% break now, which is much needed. Any comments, suggestions, or analysis would be greatly appreciated.
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[[I am pondering whether or not to start my IRA as a Roth or regular IRA. I know that all of my
withdrawls in the future would be tax free, but I am losing the valuable tax deduction now. I am 30
years old and this scenario has 30 years to develop. If I take the deduction now and pay the tax
later I would only be paying 15% tax in the future (all things remaining the same as now)and getting
a 28% break now, which is much needed. Any comments, suggestions, or analysis would be greatly
appreciated.]]

We have discussed this issue many times in this folder. In fact, there have been a number of analysis posts on this issue. You might want to go back and look 'em up.
This is obviously the $64k question that many of you will have to answer. And there is NO easy answer.

TMF Taxes
Roy

SPECIAL NOTE: I try to answer as many questions as I can each week, and I generally select those that have not been asked before. If you don't get a detailed answer to your question, it is probably because my time is so limited during tax season, or because it has already been asked and answered in this folder in the past, or because it has been discussed in the Taxes Frequently Asked Questions area. In order to visit the Taxes FAQ area, go to the Fool's School area (http://www.fool.com/school.htm) and check out "Other Features" in the list box, OR you can jump directly to the Taxes FAQ area (http://www.fool.com/school/taxes/taxes.htm). Additionally, if any references were made to the IRS Web Site, you can get there by pointing your web browser to (http://www.irs.ustreas.gov)
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<<I am pondering whether or not to start my IRA as a Roth or regular IRA. I know that all of my
withdrawls in the future would be tax free, but I am losing the valuable tax deduction now. I am 30
years old and this scenario has 30 years to develop. If I take the deduction now and pay the tax
later I would only be paying 15% tax in the future (all things remaining the same as now)and getting
a 28% break now, which is much needed. >>

In general, I think that if you can have a deductible IRA, that's what you should take. There's a good chance that you won't qualify for this very long.

BTW, don't count n being in the 15% bracket when you retire. My mom, 73 yr old, was rather disgusted to find that she's still in the 28% bracket, even though her sole income is pension payments. Or are you one of those people who still think that Social Security will be there for you when you retire?

Ray
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