2007-01-28 18:28:51 · 3 answers · asked by joshuademex 1 in Business & Finance ➔ Investing
What George P said, plus the fact if you have a qualified plan through your employer (401k, 403b, etc), you can NOT deduct contributions to a traditional IRA. Your only real choice in this situation is to add to a Roth (assuming income limits). If you make too much (single~$110k, joint ~$160k) you can not contribute to a Roth, so now you are back to a traditional. the down side is you make non deductible contributions and I suggest you keep very good records about what was tax free going in and what was not. That way, when you start taking $ out, you can get the money you did not get a deduction on back with out paying taxes on it.
2007-02-01 08:59:38 · answer #1 · answered by my opinion 2 · 0⤊ 0⤋
Just income tax considerations. In one you pay in with after tax money and pay no taxes on the distributions at the end (ROTH). In the other, you pay in with pre-tax money and have to pay ordinary income taxes on the distributions. You will get taxes at one end or the other, but you get to pick which.
2007-01-28 18:47:18 · answer #2 · answered by ZORCH 6 · 0⤊ 0⤋
They want the tax deduction NOW.
2007-01-29 01:35:43 · answer #3 · answered by vegas_iwish 5 · 0⤊ 0⤋