There are differences between the two on withdrawing money and you need to consider your own personal circumstances in determining which one to pick. I’ve since forgotten the differences.
It depends what tax bracket you are in now and where you think you will be later and, what you think tax rates will be in the future.
Mostly those assumptions have to do with SWITCHING an IRA to a Roth. I just researched this for someone and it looks like if you’re starting a new one, Roth is the way to go. Sit own and discuss this with whomever you use right now whether it be a bank, a mutual fund company or a broker like Schwab. i would recommend going into a Schwab office and opeing one up after discussing alll the pros and cons.
And whoever answers my questions, please please make sure it’s in simple english that a 5th grader can understand. I’m the *rob* of the financial world.
DAve, I asked a quesiton late in yesterday’s OT about Roth IRAs. Maybe you can give me some feedback.
Etson, thank you for the explanation.
But when is it better to do a Roth vs. a traditional? Is it better to tax deduct (traditional) now? and pay taxes later?
or not tax deduct the contribution now and not pay tax on it later?
Very few Asians are macho, ET. The accountant or IT outfit wouldn’t go well with the image of the Village People.
Wait, I just realized that the Village People had two black guys and two white guys and NOT ONE Asian.
Not very diverse were they?!
There are differences between the two on withdrawing money and you need to consider your own personal circumstances in determining which one to pick. I’ve since forgotten the differences.
“And, yes, it was navy.”
CGar, likes to be ‘In The Navy’.
http://www.youtube.com/watch?v=InBXu-iY7cw
It depends what tax bracket you are in now and where you think you will be later and, what you think tax rates will be in the future.
Mostly those assumptions have to do with SWITCHING an IRA to a Roth. I just researched this for someone and it looks like if you’re starting a new one, Roth is the way to go. Sit own and discuss this with whomever you use right now whether it be a bank, a mutual fund company or a broker like Schwab. i would recommend going into a Schwab office and opeing one up after discussing alll the pros and cons.
And whoever answers my questions, please please make sure it’s in simple english that a 5th grader can understand. I’m the *rob* of the financial world.
Shall we take a vote, ET??
DAve, I asked a quesiton late in yesterday’s OT about Roth IRAs. Maybe you can give me some feedback.
Etson, thank you for the explanation.
But when is it better to do a Roth vs. a traditional? Is it better to tax deduct (traditional) now? and pay taxes later?
or not tax deduct the contribution now and not pay tax on it later?
I wish this website had awesome avatars of stuff blowing up so I could express graphically my feelings on “:P”