IRA accounts; Roth or Traditional
 

I'm looking to move an old employers 401(k) account into an IRA. I prefer a Roth IRA account for the tax-free growth over a Traditional IRAs tax-deferred growth, unfortunately I can't move it into a Roth IRA without taking a hit on my income taxes. Just wondering what some of your opinions are about the two IRA accounts. Also do you think opening one of each is a smart move?

If I remember correctly
 

this is the last year you can roll a 401k or traditional IRA to a Roth without the 10% penalty. You will have to pay the tax on the money, but you have not paid the tax anyway. To me, Roth all the way. You do not know what the future tax rate is going to be. I would much rather have the tax free growth.

Exactly what Payton said. You dont know what the tax rate will be in years to come. Hopefully lower, but don't hold your breath.

Due too the overwhelming responses from everyone (LOL), I think I'll take the tax hit now and opt for the Roth IRA. Why avoid the tax hit now when there's no telling what the tax rate will be when I need this money after retiring. Good points Payton and Jay thank you.

Put the maximum amount that you can into a roth, then everything above and beyond that into an 401k. As long as whoever is investing your money knows what they're doing, your money will grow substantially over the next decade. Now is the time to invest.