Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
currently our company does not have a 401(k) plan (we tend to start one after this april 15 tax season). Last year I opened a Roth IRA. I received the status of this Roth IRA and turns out the return was not so great. Contribution of 2,000: gains of only $20 and minus setup charge of $25. Net $1,995 for the tax season of 1997. My question is this: had i opened a Traditional IRA I would have been able to get 2,000 in deductions (maybe $200 deduction) so wouldnt have been better to open a Traditional IRA get the deduction and since there really no gains. I feel not only did i not keep my money i LOST money. Maybe in the long run a Roth works but for now it sucks. It's it better to wait to contribute to the 401 and not even bother with Roth and traditional for the 1998 tax?
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.