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Which IRA should you choose?
By Stephen Rothman
Bankrate.com
The
choice between the Roth and the traditional Individual Retirement
Account involves more than just deciding whether pay the tax man
now or pay him later. Banks and other financial institutions are
providing ways to figure which plan fits best in the retirement
portfolio.
 For
J. Stephen Howell, investing in a Roth or traditional Individual
Retirement Account involves only one question:
"Do
I want to pay taxes before the money goes in or when the money comes
out?" he asks. "For me, I think I would rather pay later,
much later."
Online IRA calculators abound
But
that may not be the right choice for everyone, so BankAmerica,
like many others, is providing online information and a calculator
to help the consumer make the right choice before decision time
runs out April 15.
That
is the last possible day you can open an IRA either in person or
by fax and money transfer with phone authorization, said Janet Eisenstat,
a spokeswoman for the American
Bankers Association.
Several
years ago, Eisenstat said, she and her husband made an 11th-hour
decision to create an IRA. The documents were faxed to them at home,
they signed, then faxed the papers back to the bank.
"We
then did a wire transfer by telephone to fund it," she said,
proving that old-fashioned technology still works, provided there
is a willing bank or financial institution.
While
it now is possible to download IRA forms, Eisenstat said financial
institutions would rather meet with investors "to make sure
the right decision is being made."
Looking for links?
There are many sources of information online. Here are a few:
- Strong
Funds offers retirement ideas linked to the IRA.
- ACI
has an IRA rollover calculator for those interested in moving
money from a traditional IRA to a Roth IRA.
- Prudential
explains IRA opportunities and offers a calculator.
- Data
Chimp -- helps an investor understand the Roth IRA and includes
a calculator to determine if it's right for the individual or
family.
- Neuberger
& Berman Management helps employees with pension plans
decide if a Roth IRA has value for their retirement planning.
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