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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
- Is roth 401k really better than traditional? - Reddit
As you get older and start earning more, though, it makes more sense to switch to traditional (especially since you have the option of supplementing your 401k with a Roth IRA) Traditional also leaves the option of someday quitting, and living on your cash accounts and converting Traditional to Roth while you've got $0 earned income
- Roth vs traditional 401k, how bad is it to choose the wrong one?
The Roth IRA in retirement can then be used to reduce your tax rate when taking distributions from your traditional 401k in retirement Also since traditional withdrawals are taxed as ordinary income a portion of your traditional distribution is effectively tax-free as a result of the standard deduction
- 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
- absolute beginner - roth IRA advice? : r fidelityinvestments - Reddit
A Roth IRA is a tax-advantaged retirement account where you make after-tax contributions and can withdraw those contributions tax-free and penalty-free at any time and for any reason
- 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
- Roth 401 (k): Pretax vs Roth : r Bogleheads - Reddit
Roth 401 (k): Pretax vs Roth I (24) have a 401 (k) with my employer Currently, I have over 17k I’m getting my employer's full match (4%) My contributions are 5% Pretax and 9% Roth They’re relatively high because my expenses are pretty low, and I opened my account later than I wanted Are the percentages looking good for both categories?
- Personal Finance - Reddit
Roth or Traditional? This question relates to IRAs as well as 401 (k) and similar employer-sponsored plans if your employer offers the option to make Roth-style contributions (Anywhere it says "401 (k)" below will generally also apply to 403 (b) plans, 457 plans, and the TSP ) In a Traditional account, money goes in without being taxed With a Traditional IRA, while you are contributing from
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