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DansDeals Forum => General Discussion => Topic started by: Smirk on July 01, 2008, 09:49:39 PM

Title: IRA
Post by: Smirk on July 01, 2008, 09:49:39 PM
Does anyone know what's better for a 20 year old to setup? a regular IRA or a roth IRA?
Title: Re: IRA
Post by: Eli on July 01, 2008, 09:50:59 PM
I think a 20 yr old should take his hard earned money and fly to Europe with friends.

Congratulations on your 100th post!
Title: Re: IRA
Post by: Smirk on July 01, 2008, 09:52:49 PM
Thanx!
I agree a 20 year old should do that TOO
Title: Re: IRA
Post by: aygart on July 01, 2008, 11:20:37 PM
If you have money left after your vacation, or after paying your Starwood bills from it, an IRA is a good place. In general, a standard IRA is only worthwhile for the current tax deduction. If you are currently in a high tax bracket or one higher than you anticipate being in at retirement, which is not usually the case at 20, a standard is better. Otherwise, a Roth is better. The basic idea is that a standard gives you a deduction now, but principle and earnings are taxed upon withdrawl as ordinary income. A Roth does not give a deduction now, but withdrawls are tax free including any type of earnings. Can't tell you much more without knowing you.
Title: Re: IRA
Post by: aygart on July 01, 2008, 11:24:26 PM
One more thing, keep in mind that you must have earned income to contribute to either.
Title: Re: IRA
Post by: ash on July 02, 2008, 01:04:46 AM
if you are not paying taxes or not paying very much taxes got with a roth ira
Title: Re: IRA
Post by: ash on July 02, 2008, 01:05:01 AM
you could always change it later on
Title: Re: IRA
Post by: levi on July 02, 2008, 04:24:32 AM
I think a 20 yr old should take his hard earned money and fly to Europe with friends.
lol   So its pretty obvious thats its the 3 of us going next week :)
Title: Re: IRA
Post by: Smirk on July 02, 2008, 04:31:38 AM
lol   So its pretty obvious thats its the 3 of us going next week :)
can't wait :)