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Whether to make further investments into a regular tax-advantaged employer plan and IRA retirement accounts versus investing in Roth IRA and tax-advantaged employer plan personal accounts is not always a straightforward decision.

The choice on the trade offs happens to be one of the most complex choices of do-it-yourself financial planning. Many financial factors can decide whether a traditional IRA or tax-advantaged employer plan retirement account contribution versus a Roth IRA or tax-advantaged employer plan personal account contribution choice would be best.

In most circumstances making investments into a traditional IRA or tax-advantaged employer plan retirement accounts is the better decision, when those contributions would be deductible against this year’s income taxes.

The trade-offs are complex. Simple retirement planning spreadsheets are not able to model the many important personal financial factors. The decision is not only about tax rate changes. Instead, the choice requires a comprehensive personal finance projection and analysis of an investor’s lifecycle income, taxes, and assets.

(Here is where you can find a comprehensive Roth IRA savings calculator that makes automatic this regular tax-advantaged employer plan or IRA retirement account versus contributing to “Roth” IRA or tax-advantaged employer plan personal account financial projection.)

Whether or not a family will consume less and save enough and invest carefully across a lifetime is most important in the Roth retirement plan versus the “deductible against this years income taxes” ordinary retirement plan additional investment choice.

When a person cannot make enough money, cannot save aggressively, cannot strictly control investment costs, and/or cannot grow a large enough investment asset portfolio, then that person will not have to worry about being in the upper income tax rates when retired — regardless of whether federal and state tax have changed by retirement. If a family will not have substantial enough assets and income in retirement, then the current tax reduction an investor can get from deciding on a traditional retirement plan additional investment will tend to be much more financially favorable over a lifetime.

Note: This article ONLY talks about personal financial circumstances where the person has the choice of making a “currently tax deductible” ordinary IRA or 401k contribution versus a currently “not tax deductible” Roth IRA or 401k contribution. When you can’t take the deduction this year but can make a Roth contribution, then the Roth deposit is more desirable.

A comprehensive and automated lifetime planner with a Roth retirement calculator is vital to generate a fully personalized plan for financial success

In addition, to develop a really useful family financial strategy depends upon you using an excellent financial planning worksheet with a high quality investing calculator and a superior personal financial planning software.

Choose a superior all-in-one financial planning calculators home computer application with the first-rate retirement planning software, excellent personal budget planner, and excellent investment calculators for your self-directed lifetime family financial planning.