Comments on: Are Roth IRA phaseouts really that bad for those phased out? http://www.mightybargainhunter.com/2007/05/13/are-roth-ira-phaseouts-really-that-bad-for-those-phased-out/ Personal finance, commentary, and spending less the easy way Fri, 19 Mar 2010 14:24:44 -0400 http://wordpress.org/?v=2.8.6 hourly 1 By: mbhunter http://www.mightybargainhunter.com/2007/05/13/are-roth-ira-phaseouts-really-that-bad-for-those-phased-out/comment-page-1/#comment-51152 mbhunter Sun, 13 May 2007 19:34:52 +0000 http://www.mightybargainhunter.com/2007/05/13/are-roth-ira-phaseouts-really-that-bad-for-those-phased-out/#comment-51152 Samerwriter, you're right that the way I phrased it wasn't quite clear (or correct). You're also correct that the contributions are not tax-free. I meant to imply that the tax savings at withdrawal would be larger if one was in a higher marginal tax bracket. Thanks for helping me to clarify this! Samerwriter, you’re right that the way I phrased it wasn’t quite clear (or correct).

You’re also correct that the contributions are not tax-free. I meant to imply that the tax savings at withdrawal would be larger if one was in a higher marginal tax bracket. Thanks for helping me to clarify this!

]]> By: dimes http://www.mightybargainhunter.com/2007/05/13/are-roth-ira-phaseouts-really-that-bad-for-those-phased-out/comment-page-1/#comment-51143 dimes Sun, 13 May 2007 18:39:07 +0000 http://www.mightybargainhunter.com/2007/05/13/are-roth-ira-phaseouts-really-that-bad-for-those-phased-out/#comment-51143 Meh, I'm just amazed to see that most of the people I see who have hit the phaseout limits for Roths are not contributing to ANY sort of retirement account, be it a traditional IRA, a TSP or a 401k/403b. What do they plan to do when they turn 70? Keep working? Meh, I’m just amazed to see that most of the people I see who have hit the phaseout limits for Roths are not contributing to ANY sort of retirement account, be it a traditional IRA, a TSP or a 401k/403b. What do they plan to do when they turn 70? Keep working?

]]> By: samerwriter http://www.mightybargainhunter.com/2007/05/13/are-roth-ira-phaseouts-really-that-bad-for-those-phased-out/comment-page-1/#comment-51128 samerwriter Sun, 13 May 2007 17:27:20 +0000 http://www.mightybargainhunter.com/2007/05/13/are-roth-ira-phaseouts-really-that-bad-for-those-phased-out/#comment-51128 "they’re also saving more in taxes for the same contribution because they’re in a higher marginal tax bracket." I'm confused by this statement; a contribution to a Roth IRA is not tax deductible. True, the earnings are tax free, but there is no savings on the initial contribution. I think there's a misconception about high income earners, that somehow they're given special opportunities because of their income. The difference between making $199,000 and $200,000 is about $500 after taxes. When you hit this income, you don't start getting special offers in the mail for higher-yielding money market accounts or better mutual funds. “they’re also saving more in taxes for the same contribution because they’re in a higher marginal tax bracket.”

I’m confused by this statement; a contribution to a Roth IRA is not tax deductible. True, the earnings are tax free, but there is no savings on the initial contribution.

I think there’s a misconception about high income earners, that somehow they’re given special opportunities because of their income.

The difference between making $199,000 and $200,000 is about $500 after taxes. When you hit this income, you don’t start getting special offers in the mail for higher-yielding money market accounts or better mutual funds.

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