[petegz28]

Originally Posted by Buehler445

Right, but that's not what Lew was talking about. He was talking about distributions not being taxed.





You're right, you can't automatically assume that, which is why I said "In theory".




Wrong-o dude. I have no interest in getting in a pissing match on a financial thread, but what I've said is accurate.

What you withdraw out of a ROTH is not taxed. What you withdraw out of a Traditional IRA/401K is taxed upon withdrawl. What you withdraw consists of:

ROTH =
Basis (what you contributed after tax meaning you paid tax on it)
+Gain(Not taxed)

401K/IRA =
Basis (contributed pretax, meaning it wasn't taxed, but is taxed upon withdrawl)
+Gain (taxed on withdrawl)

My statement was accurate - gains are not taxed. So was your's. Lew's point is typically correct also, having investments in both ROTH and Traditional should net you a lower tax bracket.

But for most folks, what is really appealing about a ROTH is that the gains aren't taxed. Especially if they are younger and have more time for gains to compound.

I never said a ROTH was taxed. In fact I specifically said only a Traditional and 401k were taxed.