Choosing Between Roth IRAs and Traditional Deductible IRAs

The decision is complicated if you're eligible for both types of IRAs. With the creation of the Roth IRA and the liberalized eligibility guidelines for the traditional IRA, the vast majority of individuals are now eligible to make some sort of IRA contribution.
IRA Eligibility
All but the wealthiest of workers are eligible to contribute to a Roth IRA. Eligibility to make the maximum contribution to a Roth is limited to married couples with adjusted gross incomes of less than $150,000 and single individuals with incomes under $95,000. Smaller contributions are allowed for couples with adjusted incomes up to $160,000 and singles with incomes up to $110,000. Roth IRA contributions aren't deductible, but withdrawals are tax-free once the account has been open more than five years and you're over age 59 1/2.
Fewer taxpayers qualify for traditional IRAs, where contributions are deductible, but withdrawals are taxed.......

Join Now to view the rest of this term paper!
Members: Login to view this research paper.

Title: Roth Ira's Or Traditional Ira's
Approximate Word Count: 939
Approximate Pages: 4 (250 words per double-spaced page)

With the Term Papers Lab Membership Pass, you get instant access to every essay on this site, including this essay on Roth Ira's Or Traditional Ira's, for as long as you remain a member.

Other essays sites charge almost $100 for a single term paper. At Term Papers Lab, you can get instant access to over 100,000 research papers for as little as $29.95!