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May 13, 2011

Individual Retirement Accounts come in various forms.

First there was the Individual Retirement Account (IRA), in 1998 the Roth IRA was created and in 2006 the Designated Roth 401 (k) (Designated Roth Account) was created. 
There is an avalanche of article discussing IRAs being converted to Roth IRAs, 401(k) accounts being converted to Designated Roth Account, recharacterization of Roth IRAs (changed back to an IRA).
There is more to the decisions than knowing the tax consequences, the contribution limitations, required holding periods, limitations on withdrawals, etc.  Factors such as your health, future tax rates and expected size of your estate, the strength of the economy are examples of additional factors. 
Other factors relate to Designated Roth Accounts.  Not all 401(k) plans are the same.  Not all plan administrators have the same policies and the mechanics will vary among financial institutions.
The Internal Revenue Service has information on its website (https://www.irs.gov/) to help in the decision process.  A Roth Comparison Chart is a good starting place.  SEE CHART
Sound, informed and objective guidance from an experience professional is advised.

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