12 responses

  1. Gabi
    September 11, 2012

    I totally agree, I've been there at a discussion between our american friends last week, and they've made a decision: they have chosen the Roth IRA because it's flexibility which could be turned into some benefits as well. Although I'm not into us tax rules.
    My recent post Fogpótlás és fogbeültetés Közép-Kelet-Európában

    • URFinanceSimple
      September 11, 2012

      I definitely appreciate the flexibility of the ROTH IRA over the traditional.. also the never paying taxes thing is cool :-) On Tue, Sep 11, 2012 at 8:42 AM, YFS <yourfinancessimplified@gmail.com> wrote: approve

  2. Alex Huynh
    June 20, 2012

    Look at the historical US tax rate… taxes are going up. ROTH RULES!
    My recent post Generations of Happiness

  3. AverageJoe
    May 16, 2012

    I have both. I needed the traditional to roll over an old 401k. The Roth gives me tax free money later. We don’t contribute to a traditional, but sock money into a 401k plan. So the combo of tax deductions today plus tax free money later gives me good stuff now and good stuff down the road.

    • URFinanceSimple
      May 16, 2012

      Good plan.. I actually just stopped contributing to my 401k because of the excessive fees. The game plan is to max out two traditional IRA\’s then roll them until Roth\’s. Since we live on one income we only need her 401k in retirement, which will be massive, so we plan to use the ROTH IRA\’s for a 2nd retirement/ education fund for future children. Hmm.. Maybe I should blog more about this.

  4. Eric J. Nisall – Dol
    May 16, 2012

    For now, I'm in a Roth. It just makes more sense at the current time. Between mortgage interest and real estate taxes I get plenty of deductions, which brings my taxable income down to a manageable tax bracket. In retirement, I don't plan on being anywhere other than a high bracket, so my preference is to pay the lower taxes today and tax advantage of the tax-free distributions later on in life. Plus, since there is no required minimum distributions on a Roth, I won't be forced to take any of it unless I really want/need to thereby saving me even more in taxes later on by not being forced to take the RMD which are taxable even if not necessary.

    • URFinanceSimple
      May 16, 2012

      Not only do we share the same taste in music and in sports, now our investment options are starting to sound similar. Great well though tout response!

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