2006-12-08 08:04:08 · 10 answers · asked by Frenchy 2 in Business & Finance ➔ Investing
Roth IRA I think is better. You get all of your money back tax free and you can get it all at one time.
2006-12-08 08:16:51 · answer #1 · answered by Texan 6 · 0⤊ 0⤋
Unless you plan on having a very low income in retirement, a Roth is the best way to go if you meet IRS income levels, etc. (see irs.gov Publication 590). The downside to the Roth over a traditional IRA is that you will not get a current year tax deduction. The upside is that at normal retirement, none of the money in a Roth will be taxed at withdrawal, whereas the withdrawals from a traditional IRA are fully taxable. You can also pull ALL of your contributions at any time for any reason from a Roth without taxation.Again see IRS Pub 590 for more details.
The big question is, would you rather pay a little more tax now, or a lot more later.
Invest wisely and good fortune will be in your future.
2006-12-08 08:12:33 · answer #2 · answered by domers13 2 · 0⤊ 0⤋
The nice reply is to do each, if you'll be able to do each a Roth and 401k. But in the event you needed to pick among Traditional or Roth, opt for the Roth. The cash you installed grows tax loose, and you'll be able to take it out while you retire tax loose as good. Generally a Roth makes extra experience in the event you consider you are going to be retiring at a larger revenue tax bracket. Unless you're taking place the monetary ladder, that is real for so much persons. However, in case your organization has a 401k, you will have to appear at it - in lots of circumstances the expenses and determination suck, however many organizations present a fit as much as a given quantity, which is sort of a assured go back to your funding...you cannot beat that. For well funding recommendation, begin through studying a few well elementary books first, like "Investing For Dummies".
2016-09-03 10:08:41 · answer #3 · answered by ? 4 · 0⤊ 0⤋
here's the issue. do you think your tax bracket is higher now, or will it be higher at the time of retirement? can you invest more (tax free) and grow only to be taxed later?
personally, i like the thought of investing post-taxes (Roth IRA) and having all that compounded growth in the future without any taxes. you have 30-40 years of growth.
i think Roth is a no-brainer. do you really think taxes are going down?
2006-12-08 08:08:08 · answer #4 · answered by more than a hat rack 4 · 0⤊ 0⤋
You need to qualify for those types of accounts. If you know that you qualify for both, I recommend the Roth IRA. You have already paid taxes on that money and you can allow that money to grow until you are ready to retire.
Plus, incaseyou ever really need the money, you are allow to pull out your contributions.
2006-12-08 08:12:32 · answer #5 · answered by MR MONEY 3 · 0⤊ 0⤋
Don't bother with either. Invest it in stocks. Buy low, sell high. It's your money, waiting until your 59.5 is just a waste of time. You may gain some tax benefits, but when something unexpected comes up, you will always find yourself asking if you should take money out of your IRA to fund something else.
2006-12-08 13:30:05 · answer #6 · answered by Anonymous · 0⤊ 1⤋
Roth.
2006-12-08 08:12:03 · answer #7 · answered by ctran 2 · 0⤊ 0⤋
without any more info. Pick Roth.
2006-12-08 08:11:25 · answer #8 · answered by sofacue 2 · 0⤊ 0⤋
go for the roth
2006-12-08 08:17:50 · answer #9 · answered by darin1973 2 · 0⤊ 0⤋
Do you have a house already?
2006-12-08 10:42:11 · answer #10 · answered by Anonymous · 0⤊ 1⤋