- Joined
- Sep 10, 2006
- Messages
- 4,071
Hey all,
Trying to decide on whether we should choose a traditional vs. a Roth for my IRA. DH will do a Roth (not eligible for traditional). We will be eligible to take the full deduction (unless we get a major windfall) for a traditional IRA for myself.
Everything I read said if you expect to be in a lower tax bracket at time of retirement, then go for the traditional IRA now (i.e. take the tax deduction now while in a higher bracket). We expect to live on much less than what we bring home now, so I would presume we will be in a lower bracket, and the traditional is right for us.
However, DH says that the tax brackets could very well change in 2010 and even though we will be living on much less when FIRED we still could be in a higher tax bracket than now. I'm really confused
Feedback?
Trying to decide on whether we should choose a traditional vs. a Roth for my IRA. DH will do a Roth (not eligible for traditional). We will be eligible to take the full deduction (unless we get a major windfall) for a traditional IRA for myself.
Everything I read said if you expect to be in a lower tax bracket at time of retirement, then go for the traditional IRA now (i.e. take the tax deduction now while in a higher bracket). We expect to live on much less than what we bring home now, so I would presume we will be in a lower bracket, and the traditional is right for us.
However, DH says that the tax brackets could very well change in 2010 and even though we will be living on much less when FIRED we still could be in a higher tax bracket than now. I'm really confused
Feedback?