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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
Can someone explain 401k, Roth 401k and a Roth IRA to me like . . . - Reddit In a roth or a tradition ira 401k its on taxed once (either when you earn it for roth or when you cash it out for traditional) Ex-$1000 Traditional IRA- no tax, leave it for a long time, grows to 5k, withdraw it and pay income tax on 5k, netting you like 3500-4k depending on tax bracket
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
401K. . . . Pre-Tax, After Tax, and or Roth??? : r personalfinance - Reddit Roth is almost never the correct answer, outside of some outlier situations 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
Roth vs Traditional? Roth is almost always a worse choice . . . - Reddit 100% Roth is almost never the right answer, because at the margin shifting $1 from Roth to Traditional almost always saves you taxes (the exception being if you have enough income in retirement from a non-Roth non-Traditional source to fill up the standard deduction)
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
Just opened my ROTH IRA! How should I invest and what do you . . . - Reddit Since you mentioned your account is a Roth IRA, I've included an article that may be helpful on how to invest your IRA How to Invest Your Roth IRA If you would like more hands-on learning about investing, we also offer online classes to help you as you begin your investing journey Check out the link below for more information on these classes