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rockdale80
08-10-2009, 01:50 PM
Thoughts?
Farmersfan
08-10-2009, 02:00 PM
Opening a new IRA? I would most definitely go with a Roth. Pay taxes now instead of years down the road when you don't know what the tax rate will be.....
Unless you are getting a free rollover from a traditional I would not convert a big traditional IRA to a Roth IRA.
ziggy29
08-10-2009, 02:17 PM
Consider your current tax bracket compared to what you expect your tax bracket to be in retirement, keeping in mind that there are more than 10 trillion reasons why tax rates will probably have to be higher in the future (not a political statement, just reality).

If you think your tax bracket will be the same or higher in retirement, I'd go with the Roth.
Reds fan
08-10-2009, 02:38 PM
Originally posted by ziggy29
Consider your current tax bracket compared to what you expect your tax bracket to be in retirement, keeping in mind that there are more than 10 trillion reasons why tax rates will probably have to be higher in the future (not a political statement, just reality).

If you think your tax bracket will be the same or higher in retirement, I'd go with the Roth.

:ditto:
JasperDog94
08-10-2009, 03:48 PM
If you're young, there's no reason not to go with a Roth. If you're closer to retirement, you're income will probably be less and it might be better to go with a traditional and get the tax break now. For most folks the Roth is the way to go. I actually converted a traditional to a Roth (less than 10k) earlier this year when the market was around 8000. I got it transferred at a great time when the market was down.
ziggy29
08-10-2009, 03:50 PM
Keep in mind also that in 2010 people will be able to convert a traditional IRA into a Roth regardless of income -- and pay half the tax in 2011 and the other half in 2012. So if you think your tax bracket will be higher in the future than it is today, and you have the cash available to pay taxes (or increase withholding), it's worth considering.
rockdale80
08-10-2009, 09:52 PM
Thanks for the information all.
BreckTxLonghorn
08-11-2009, 10:08 AM
Originally posted by Farmersfan
Opening a new IRA? I would most definitely go with a Roth. Pay taxes now instead of years down the road when you don't know what the tax rate will be.....
Unless you are getting a free rollover from a traditional I would not convert a big traditional IRA to a Roth IRA.


Holy crap, it's a first. I agree whole-heartedly.:D
Farmersfan
08-11-2009, 01:07 PM
Originally posted by BreckTxLonghorn
Holy crap, it's a first. I agree whole-heartedly.:D




It's ok! The world is full of slow learners!!!!!! :D :D
BreckTxLonghorn
08-11-2009, 01:23 PM
Originally posted by Farmersfan
It's ok! The world is full of slow learners!!!!!! :D :D


Or a broken clock is right at least twice a day.
Farmersfan
08-12-2009, 07:52 AM
Originally posted by BreckTxLonghorn
Or a broken clock is right at least twice a day.



"An enemy will agree, but a friend will argue."
Russian Proverb
BreckTxLonghorn
08-12-2009, 10:53 AM
Originally posted by Farmersfan
"An enemy will agree, but a friend will argue."
Russian Proverb


"Don't sweat the petty things, and don't pet the sweaty things."

--Confucius