jawn619 Posted June 23, 2015 Share Posted June 23, 2015 I always thought that putting money in a Roth was more advantageous than putting it in an regular IRA, but after doing some calculations, I'm not sure if Roth is the clear winner Example Assumptions 25% tax rate 10% compound rate Year one Either put $10k in IRA or $7.5K in Roth Year 10 Roth $69,849 IRA $93,132.26 After taking a 25% discount to the IRA, you end up with the same amount. Other things to consider Roth contributions can be taken out any time after 5 years. That's a huge benefit because of the flexibility Regular IRA can be used be taken out tax free for certain events like buying a house/education expenses Does anyone have anything else to add/pros/cons of each? It's not a clear cut decision but I'm still learning towards Roth. Link to comment Share on other sites More sharing options...
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