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Originally Posted by CRFSaver
There is a flaw in this logic. Your assuming the extra 200 dollars you put in doesnt compound. RUn a simple future value of an annuity over 30 or 40 years and the difference is huge. The closer you get to retirement the more a Roth makes sense but at 22 years of age I think you do a diservice by telling someone to put a majority of their money in a Roth. The math just doesnt make sense.
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CRF, trust me, it doesn't make any difference.
Let's say your $1,000 is in your retirement plan for 10 years earning 10%. It grows to $2593.74. After 20% taxes, $2075. $800 that grows for 10 years @ 10% becomes, guess what, $2075.