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?”
Yes! Absolutely.
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
