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Roth IRA Rules - Reddit Confusing ROTH IRA contributions for living abroad Hi! Basically, I'm trying to see if I can contribute to my ROTH IRA, but I've been researching it and it seems quite tricky Usually, a US citizen can contribute up to $6,000 All my income is Foreign Earned income, so basically I can't add any in EXCEPT for $1,100 of freelance income I got
Is a Roth 401 (k) clearly better than a Traditional 401 (k) or . . . - Reddit Trying to understand whether I should contribute to a Roth or Traditional 401k, and I'd like help clarifying my understanding of how each account is taxed I use contributions to refer to the amount of money from my paycheck I will put in the account, and earnings to refer to the money I will get from the growth of my investment With a Traditional 401k Contributions are not taxed Earnings are
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
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
401K vs ROTH IRA : r personalfinance - Reddit You would go Roth Traditional IRA after matching your 401k if your 401k doesn't have great options to invest in If your 401k has low cost index funds then might want to consider maxing it out If your income tax this year will be low I would do the 401k match, Max the Roth IRA, Then contribute what is left back to the 401k Just my 2 cents
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!
What are the benefits to after tax or Roth in-plan conversion . . . - Reddit You can convert all or a portion of your pretax and or traditional after-tax savings to Roth money within the 401 (k) plan - you can even set up automatic conversions You’ll owe ordinary income tax on the pretax money converted to Roth in the tax year of the conversion
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