I'm getting the feeling that there is a blatantly obvious fact that I'm missing, which is the last piece of the puzzle in deciding Traditional vs. Roth for myself.
I have been contributing to a Roth IRA; obviously, with post-tax dollars from my paycheck. I also contribute to a 403(b) - these contributions are made automatically by my employer pre-tax. Unfortunately that means I'm stuck with the crappy fund options that they offer.
So if I decided to contribute to a Traditional IRA instead of my Roth, would the money come from my paycheck (post-tax) or withheld from my check and contributed through my employer (pre-tax)? I'm confused because I know Traditional IRAs are tax-differed, and I meet the criteria for my contributions to be fully deductible, but that does mean I still fund it with my post-tax dollars that are refunded when I do my taxes at the end of the year?
As background, I should remain in the 15% tax bracket regardless. I am considering Traditional in order to have more money building compound interest over time, as opposed to less money available to compound in Roth (because the money has already been taxed). Yes, I'll pay those taxes later when I withdraw them from a Traditional, but only on my contributions; my tax-free interest/dividend income should hypothetically be higher over time since there was more money in the account.
Does this make sense, and can anyone clarify?