Reply to What is the deal with a Roth IRA?

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Reply to "What is the deal with a Roth IRA?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]If you are high income and expect to stay that way there are other benefits to Roth's versus traditional IRA's.  No mandatory withdrawals at age 70.5.  $ just keep accumulating tax free, and no tax on withdrawal.  And with regard to estate planning:  The Roth doesn't have to be liquidated when you die; the beneficiary can withdraw it over an extended period, no tax.  A bonanza for a young person.

It's a gross manipulation of legislative power for the benefit of the rich.  But if you're eligible and can benefit, you might as well use it.[/quote]

OP here.  So I guess what I am really talking about it a Roth 401K, and not a Roth IRA.  Is there any meaningful difference between the two?  I don't think the TSP has any income limitations on eligibility...[/quote]

If it's Roth, there is no difference
Everyone is eligible to contribute. Only certain low income people & self employed can deduct.
Roth is great since you do not have to take it out after certain age. 
No tax paid on Roth distribution.
Roth can be given to children, taxfree.
[/quote]

I think there are a couple of differences - for one, the contribution limit on roth 401 k is much higher, and for another, I don't think you can withdraw money for college/first home expenses from a roth 401k without penalty, as you could with a roth IRA.[/quote]

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