# Why is a Roth IRA better than an IRA?

**URL:** <https://boards.straightdope.com/t/why-is-a-roth-ira-better-than-an-ira/241731>\
**Category:** Factual Questions\
**Created:** [April 23, 2004, 11:46pm UTC](https://boards.straightdope.com/t/why-is-a-roth-ira-better-than-an-ira/241731 "2004-04-23T23:46:02Z")\
**Posts on this page:** 1\
**Page:** 2

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**Author:** ![Chairman\_Pow](https://avatars.discourse-cdn.com/v4/letter/c/838e76/32.png) [@Chairman\_Pow](https://boards.straightdope.com/u/Chairman_Pow)\
**Post date:** [April 24, 2004, 11:07pm UTC](https://boards.straightdope.com/t/why-is-a-roth-ira-better-than-an-ira/241731/21 "2004-04-24T23:07:44Z")

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> [@Chairman Pow](#):
>
> Please explain your math to me.

:smack: Actually, my math was waaaaaay off. :smack:

$810 invested at 12% over 43 years would yield: $875676.92, assuming we pay no taxes on it and we earn no interest on the first year’s contribution (simulating opening the account on. Of course, since we’re investing it ourselves, we’re going to earn capital gain (or other) taxes and that’s going to be one hell of a pain in the ass to figure out, so, aside from admitting my poor-as formula-writing skillz, I’m going to figure that it’s worse than the IRA. Assuming you invested it in tax-free instruments, you’ll negate the tax you pay on the Traditional when you withdraw it, so you would, in effect (and in our simplified model) break even with the gain produced by the Roth.

Rooves: Why in the hell would you think they’re going to abolish the income tax?

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