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- Whats the point of Roth IRA? : r personalfinance - Reddit
Roth accounts are a hedge against future tax hikes and tax rate insecurity There’s a reason Roth accounts are always subject to elimination every few years, tax revenue from Roth users is far less than from traditional
- Whats the difference between a Roth Basic and a Roth Bonus . . . - Reddit
Roth basic: your normal paycheck Roth bonus: any annual year-end bonus paycheck you get You’d usually do just the basic unless you’re not able to max out with your normal paycheck and want to direct a portion of your bonus to the 401k Depending on your income, traditional 401k is likely better for you tax-wise than a Roth 401k is
- 401k Pre-Tax or 401k Roth? : r personalfinance - Reddit
After that, then go roth, or max the 401k and then roth after if that's your jam That extra 20% you can put in because it's pre-tax can grow in the next 45 years
- Roth IRA vs. Traditional IRA? : r personalfinance - Reddit
Total value of Roth IRA and post-tax brokerage account: 97,540 If he puts the $6000 in a traditional IRA, puts the tax savings in a brokerage account, and keeps both there for 40 years: His 2021 income was $30,000 He deducts the standard deduction and his $6000 contribution His total taxable income is $11,450
- Should I put $6000 in Roth IRA at once or put $500 per month?
If you are instead doing Backdoor Roth (I e make non deductible contribution to traditional IRA and do Roth Conversion) for previous year, you need to file 8606 in the returns to update the basis of the non deductible contribution made to traditional IRA and since you have already filed, you should skip otherwise you will be double taxed
- Roth 401k vs Traditional 401k : r Bogleheads - Reddit
Roth IRA via the backdoor conversion and MBDR via in-plan conversions will still let him build a sizable Roth nest egg, but forfeiting the tax break from traditional 401k today is wasteful Let me see if I can convince you of that Ask him what he expects his effective rate to be in retirement
- 401k contributions - Roth vs pre-tax : r investing - Reddit
Currently, I contribute 10% Roth and 4% pre-tax Considering the company's contributions are pre-tax, this comes out to a net 10% Roth and 10% pre-tax I don't plan on changing the amount I'm contributing (either up or down), but am looking for input on if my contributions should be allocated differently Thank you!
- 401K. . . . Pre-Tax, After Tax, and or Roth??? : r personalfinance - Reddit
Essentially you need to look at effective tax rates vs top marginal Roth contributions (and thus withdrawals) are taxed at your top marginal tax rate (so 24% for your income) because all post-tax money is fungible Traditional contributions are tax-free, but all withdrawals are taxed at your income tax rate
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