Hello! I need more advice and I promise (or will try) not to bother you all again....well at least for a while! Seriously, I really appreciate your help.

Here it is. I am trusting that someone will help me with his/her wisdom and experience.

I am in a single female in my late 40s. Last year I opened a Roth IRA. I contribute on my own without an employer contribution. I gross 65K a year and have two teen-aged dependents. I am now wondering if I made the right decision of going with a Roth rather than a traditional IRA. I will be in a lower tax bracket after retirement and my 401K and savings is all that I will have to live on. My goal is not to touch this money until retirement at 65?, but if life throws me some lemons I may have to.

Do you think I should now go with a tradional IRA or a Roth or maybe a bit of both? I plan to put the maxium in each year.
Any thoughts or ideas for me? THANK YOU ALL! I really really appreciate your help!

You probably paid a little bit more in taxes than you needed to with the Roth (since your post-retirement tax bracket will be lower). But the good news is, with a Roth, you can withdraw your contributions before retirement (not gains, just what you put in) without penalty should you need it (as opposed to a traditional IRA where you would be penalized before the retirement age). So I think overall your decision was fine if you include the life throwing you lemons scenario.

I'm curious what your marginal tax rate is.

Either way, even if I was in the 25%, I would probably do it. Especially with a 401k. Consider it a hedge against future tax rates....

In the end, it probably matters very little. Unless you absolutely need the cash today.

[quote="nelson"]You probably paid a little bit more in taxes than you needed to with the Roth (since your post-retirement tax bracket will be lower).

Not to be a contrarian, but it's not guaranteed that a person's tax bracket will be lower post-retirement.