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Everybody is different in may case I'm not entitled to a 401k because I'm not a 'proper' employee and I don't have a mortgage because I live in Boston. The Roth is better for me anyway as people keep telling me, my salary will increase some day when I've paid my dues and been hired properly.

D'Oh! .... Just in case my succinct reply is not obvious. I've just realized I've missed the obvious explanation for all this shenanigans. As DaveF's nice bit of maths proves, it don't matter if you scrape off a set percentage before or after you've earned the interest. The return is the...

I didn't just put in my own conditions, I ran a series of simulations. I tried to find a situation where a theoretical individual would benefit from the trad. option. I put John Doe in the 35% tax bracket before retirement and the 15% bracket after, had him contributing for a range of values...

Well unless I see Satan bidding on Ice Skates on Ebay, I know where I'd put my money on whether taxes are going to be higher or lower in 30 years. Seriously though. If the money we invest earns a bunch of interest over the years, which we all hope it does, the dollar value of the funds are...

Doesn't it pretty much come down to whether you'll be in a higher tax bracket when you retire than now? Since my present salary falls under the sod all tax bracket, I went the Roth route. Wouldn't you be paying tax on a higher amount with the trad. IRA/401k than with the Roth? Surely this...

If I understand the question correctly, you seem to think that putting the money in a single account give a better return due to compound interest. This isn't true. Let's say you put $100 in an account that earns 5% and leave it there for 10 years. You end up with: 100*1.05^(10)=$162.89...