Doug Posten: “I get no tax deduction now on a regular IRA because my income exceeds the limit. If I cannot deduct the $2,000 now from my taxes, isn’t the Roth IRA better?”
The Roth IRA is great for what might be called the lower upper middle class — people who earn too much to qualify for the traditional IRA deduction, but not so much as to be disqualified from contributing to a Roth IRA.
(I say lower upper middle class because in America, almost no one will admit to being upper class. “Upper middle class” is as high as we go — even if we earn half a million a year. So wouldn’t those who earn way above average — $90,000, say — be lower upper middle class?)
As reader Mike Carver put it: “For those of us who can’t make deductible contributions to the traditional IRA, the Roth IRA appears to be a no-brainer.”
Tomorrow: Still More on the Roth IRA
Quote of the Day
The test of our progress is not whether we add more to the abundance of those who have much, it is whether we provide enough for those who have too little.~Franklin D. Roosevelt
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