Comments on: Choosing Between a Roth IRA and a Traditional IRA http://militaryfinancenetwork.com/2009/11/07/choosing-between-a-roth-ira-and-a-traditional-ira/ Personal finance for military, veterans, and their families Thu, 11 Mar 2010 16:37:14 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Credit Card Chaser http://militaryfinancenetwork.com/2009/11/07/choosing-between-a-roth-ira-and-a-traditional-ira/comment-page-1/#comment-1989 Credit Card Chaser Mon, 09 Nov 2009 22:23:29 +0000 http://militaryfinancenetwork.com/?p=358#comment-1989 The choice really all boils down to whether you think that you tax rate will be higher now or higher when you retire. The choice really all boils down to whether you think that you tax rate will be higher now or higher when you retire.

]]> By: Britt (Your Roth IRA) http://militaryfinancenetwork.com/2009/11/07/choosing-between-a-roth-ira-and-a-traditional-ira/comment-page-1/#comment-1987 Britt (Your Roth IRA) Mon, 09 Nov 2009 20:49:21 +0000 http://militaryfinancenetwork.com/?p=358#comment-1987 While every financial circumstance is different, I think most people would benefit more from a Roth IRA. Why? Well, the odds are pretty good that tax rates will be higher in the future than they are now, given the massive size of the national debt. So the idea that rates might go down when you retire is wishful thinking at best. Also, if you're already thinking about retirement, the odds are good that you won't need your Roth IRA funds immediately once you retire, nor will they be your sole source of income. So do you want to box yourself in to mandatory withdrawals at age 70.5? Especially is you live to be 100 or older? I just don't see how you can go wrong with the tax-free withdrawals of a Roth IRA. While every financial circumstance is different, I think most people would benefit more from a Roth IRA. Why? Well, the odds are pretty good that tax rates will be higher in the future than they are now, given the massive size of the national debt. So the idea that rates might go down when you retire is wishful thinking at best. Also, if you’re already thinking about retirement, the odds are good that you won’t need your Roth IRA funds immediately once you retire, nor will they be your sole source of income. So do you want to box yourself in to mandatory withdrawals at age 70.5? Especially is you live to be 100 or older?

I just don’t see how you can go wrong with the tax-free withdrawals of a Roth IRA.

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