Comparing your retirement savings choices
The Roth IRA is a good choice for most people. These articles
Should you choose a Roth IRA for your annual savings? Should you convert your
to a Roth IRA? This part of our guide will help with these decisions. If you don't want to
read all the gory details or you just want a quick overview of this topic before
plunging in visit Roth IRA
Rules of Thumb and then return here for more information.
The Roth IRA Is Bigger
This article explains one of the most important features of the Roth IRA: it's effectively
bigger than the traditional IRA.
Balancing the Benefits
Digging deeper, we see that "rate shifting" can make the
traditional IRA come out ahead, but the Roth has advantages that
can overcome that benefit of the traditional IRA.
Roth IRA and Tax on Social
Nontaxable Roth IRA distributions aren't like tax-exempt interest: they don't affect the
amount of your social security benefit that's taxable.
Roth IRA vs. Nondeductible
A Roth IRA is almost always better than a nondeductible traditional IRA. But you might
consider the traditional IRA for some or all of your contribution if you are in the phase-out
range for Roth IRAs.
Roth IRA vs. Employer Plan
The possibility of getting matching contributions from your employer throws a different
wrinkle into the question of where to contribute. And there are a few other things you
should know about the differences between IRAs and employer plans.
Roth IRA Conversion Considerations
And finally, the most complicated decision: should you convert your
traditional IRA to a Roth
IRA? Doing so can be a blunder or the best financial move of your life.