IRA vs. Roth IRA: Which is Appropriate and When?

FPA member Dennis A. Suckstorf, ChFC, CFP®, AFC, a senior financial planner with Financial Advantage Inc. in Columbia, Md. elaborates, "You need to take into account not only the money being paid in taxes, but the opportunity cost of that tax money." Current and expected income tax rates and estate taxes all factor into which type of IRA will save the most money in the long run. Suckstorf believes, "Generally, the younger you are when you contribute to a Roth IRA, the better. But even if you are not young, a Roth IRA can be an estate planning tool that provides tax-free income to heirs."