Retirement: Roth and Traditional IRA

Our opinion is simple:
If you are in low tax bracket, put your retirement money
in a Roth IRA.
If you are in high tax bracket put your money in Traditional
IRA.

Roth IRA has no current tax advantage. You contribute to your
account through your taxed dollars but when you'll withdraw
after you reach 59 and 1/2 years of age or otherwise (for special
reasons like first home buy etc. See the propectus of your account)
you'll not pay any tax. That is what we like ... no headache!

With Traditional IRA contribution you can defer your tax
payment until you withdraw. So, if you are in high tax bracket,
it may seem better for you to pay that later [ One important
consideration is that at that time you'll also pay tax on your
gain - which Roth Account holders will not have to].

One last Fact: Remember this year the limit of contribution
has been increased to 4000$. Last year it was $3000.

We feel Roth IRA is a very good retirement vehicle and you must
try to maximize your contribution every year.