[OldHand2018]

Some other things to consider in favor of the traditional IRA:

- Assume you are in the 22% tax bracket (single filer, $42-89k income). If you contribute $6k to a traditional IRA, you avoid ~$1300 in federal income tax right now and can put those savings into some other non-tax-advantaged investment account. You have absolutely zero restrictions on withdrawals from that account and of course only pay capital gains taxes when you do withdraw.

- IRA contributions are limited to $6k per year and if you are eligible for a Roth IRA then let's be honest - you probably aren't going to be moving up that far in your tax bracket when you retire (sorry).

- (Long shot) If Congress ever changes the laws about IRA taxation, it will be paid at the point of withdrawal. With the traditional, you haven't yet paid anything and therefore can't be double taxed. Don't be so sure about a Roth.

- When you contribute to a Roth, you pay federal, state and local taxes on that money. There are 6 states that have no income tax so that may reduce the tax paid. On the other hand, when you contribute to a traditional you pay no tax now and instead pay at the time of withdrawal. But there are 9 states that do not tax withdrawals, and 27 more that limit taxes on withdrawals.

Anyway, I think the Roth is great, but it is definitely not the right choice for 99% of people :)

[joshdance]

Great points. So how does someone know which to chose?

[OldHand2018]

LOL, by predicting their own future of course!

But seriously - the most important part is saving for retirement. You can't go wrong with either choice as long as you contribute. Please don't let bike shedding prevent you from contributing.