Quote:
Originally Posted by aces_dad
I plan to withdrawl from my 401k when I'm retired, however, so my marginal tax rate may be much lower than it currently is.
tl;dr: my original numbered list should have said IRA where it said roth.
sorry, i was sloppy. yes, you have a decision to make between roth ira and traditional ira. i'm in my 30s and most of the advice i give itt is to younger folks, where generally low income tax rates and other advantages strongly favor the roth. for many people, though, a traditional ira is a better choice. there are a ton of articles about the tradeoffs.
now i also understand why you were talking about the roth as a hedge against tax law changes.
edit: heh, after reading over our previous conversation, you may want to max your 401k first, then either a roth or a traditional ira. that's because your 401k, if it has any good options, is going to have the buying power of a bunch of people, hence you're going to find good expense ratios. of course, if your 401k doesn't have good options, then don't do that.
Last edited by tyler_cracker; 10-03-2012 at 12:08 AM.