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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
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
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
SO Confused About How to Actually Invest my Roth IRA : r . . . - Reddit A few weeks ago I finally opened a Roth IRA with Fidelity, transferred the max yearly contribution over It was my understanding that the money would sit there and wouldn't grow until I logged in and allocated where I wanted it to be invested myself I logged in today to do that, and to my surprise there was growth?
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
Withdrawal from Roth IRA : r fidelityinvestments - Reddit The IRS mandates that Roth IRA distributions be taken in this order: Annual Contributions- Can be withdrawn anytime tax and penalty-free for any reason Conversions- Can be withdrawn tax-free A 10% penalty may apply if withdrawn within five years of the conversion Earnings- Income tax applies unless the withdrawal is qualified
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!
Should I invest into 401k, Roth IRA, and S P 500? : r investing - Reddit Should I invest into 401k, Roth IRA, and S P 500? Rephrase this to be: 401k, Roth IRA, and brokerage account, since 500 index is an investment, not an account Generally you want to max out all retirement accounts first (401k Roth IRA) before funding a brokerage account If you have a particular pre-retirement goal in mind (house, wedding, vacation) you can invest some into a brokerage
Is it true that I can withdraw my Roth IRA contributions at . . . - Reddit Yes, you can withdraw contributions and that does imply you could use the Roth as a savings account Of course, it depends on what you invest the Roth in -- if you buy volatile equity funds, then the Roth's value will fluctuate up and down quite a bit
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