1. The growth in your portion of the tIRA will not be taxed. The growth in the government's portion also goes to the government. I know it's a bit of a mindset shift, but I really think it's best to view the tIRA this way so you make proper decisions about it....
The way to think about a tax-deferred account is that it is two accounts. One is your account and is basically the equivalent of a Roth IRA. The other is a government account you invest on behalf of the government.
...To me, the differences seem to be:...
Why? What do you think the difference is between your portion of your traditional IRA (not the government portion) and your Roth IRA?
...
1. The growth in my Roth IRA will not be taxed. The growth in my tIRA will be.
2. I get to decide if and when to withdraw from my Roth IRA - tax-free.
So they don't seem equivalent.
The approach of favoring stocks in Roth and bonds in traditional (consistent with your Asset Allocation) seems to make sense.
Maybe I'm missing something.
2. Yes, that's one additional advantage of a Roth IRA, no RMDs. But honestly, if you're not going to spend your RMDs why bother saving so much in the first place anyway? Go give it away now to your heirs or favorite charities. See Die With Zero for further information on this topic.
Statistics: Posted by White Coat Investor — Fri Oct 03, 2025 5:00 pm — Replies 67 — Views 10930