The Right IRA For You

A Roth seems like the obvious choice over a traditional IRA since it has tax-free withdrawals. Not always, says Walter Updegrave.

By Walter Updegrave
Money Magazine senior editor
October 8 2007

NEW YORK (Money) -- Question: If you contribute to a traditional IRA, after many years most of your account value will be in the form of investment earnings, which are taxable when you withdraw them. With a Roth, on the other hand, your balance will be tax-free. So it seems to me that the advantage of tax-free withdrawals from the Roth in the future greatly outweighs any tax-deduction benefit you get from a traditional IRA. Doesn't that make the Roth a better deal?

READ ON

Thanks!

quote:

Originally posted by #1FAMUAN:
Thanks!

Ditto.

Incidentally there was a really great piece in Black Enterprise magazine that really went into great detail regarding these two entities.

I need to organize a regime to familarize myself with the mechanics of such investment schemes so when I do seek professional assistance, I'll be able to have a sound understanding to make informed decisions regarding my future.

Any suggested reading material?


Thanks in advance