The huge assumption that makes the Roth IRA the preferred choice for a lot of folks is that when you retire youre going to be in a higher tax bracket than you are now. With the Roth I pay taxes now, but dont pay when I withdraw from it at 59.5 years or older. At that point in time, I would hope Im making more money and in a higher tax bracket. With the traditional, you'll pay the taxes when you withdraw at the same age mentioned above...but thats on top of your other income (which I would hope would be higher than today). Also, you can withdraw the principal invested in the Roth IRA without penalty before 59.5, but with the traditional you pay tax plus a 10% penalty. Is that 5k deduction helping you today?