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Chris W. Rea
Chris W. Rea
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Long time Money.SE lurker, time for my first question.

I'm young and this is the first time I am in a position where I can comfortably max out ($5,500) my contribution to an IRA for 2016. I am trying to decide between Roth and traditional. I already understand the differences between the two, so that is not my question. This really boils down to:

I already know I will be opening a ROTHRoth 401k in 2017 and I have no IRA accounts. I can get an extra $1000 back on my 2016 taxes by simply moving $5,500 into a traditional IRA. Is this a good idea or am I being blinded by the quick thousand bucks?

I understand the appeal of tax free growth, but in 40 years will this decision actually matter?

Long time Money.SE lurker, time for my first question.

I'm young and this is the first time I am in a position where I can comfortably max out ($5,500) my contribution to an IRA for 2016. I am trying to decide between Roth and traditional. I already understand the differences between the two, so that is not my question. This really boils down to:

I already know I will be opening a ROTH 401k in 2017 and I have no IRA accounts. I can get an extra $1000 back on my 2016 taxes by simply moving $5,500 into a traditional IRA. Is this a good idea or am I being blinded by the quick thousand bucks?

I understand the appeal of tax free growth, but in 40 years will this decision actually matter?

Long time Money.SE lurker, time for my first question.

I'm young and this is the first time I am in a position where I can comfortably max out ($5,500) my contribution to an IRA for 2016. I am trying to decide between Roth and traditional. I already understand the differences between the two, so that is not my question. This really boils down to:

I already know I will be opening a Roth 401k in 2017 and I have no IRA accounts. I can get an extra $1000 back on my 2016 taxes by simply moving $5,500 into a traditional IRA. Is this a good idea or am I being blinded by the quick thousand bucks?

I understand the appeal of tax free growth, but in 40 years will this decision actually matter?

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Pete B.
Pete B.
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user45579
user45579

Traditional IRA - Worth the refund or not?

Long time Money.SE lurker, time for my first question.

I'm young and this is the first time I am in a position where I can comfortably max out ($5,500) my contribution to an IRA for 2016. I am trying to decide between Roth and traditional. I already understand the differences between the two, so that is not my question. This really boils down to:

I already know I will be opening a ROTH 401k in 2017 and I have no IRA accounts. I can get an extra $1000 back on my 2016 taxes by simply moving $5,500 into a traditional IRA. Is this a good idea or am I being blinded by the quick thousand bucks?

I understand the appeal of tax free growth, but in 40 years will this decision actually matter?