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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 Think of it like a fixed rate mortgage with a low interest rate during high interest rate periods
- Do you contribute to a Roth 401k or traditional 401k, or both? Why?
Withdrawals from a Roth 401(k) are prorated amongst contributions (which are tax free) and earnings (which are taxable) There is a loophole If you roll the Roth 401(k) to a Roth IRA, it then immediately becomes subject to the contributions first withdrawal rules for a Roth IRA
- Roth IRA vs. Traditional IRA? : r personalfinance - Reddit
35-Year Winner: Roth IRA, by just under $7,500 ***Over 40 Years*** If he puts the $6000 in a Roth IRA and keeps it there for 40 years: His 2021 income was $30,000 After the standard deduction of $12,550, his taxable income is $17,450 He will have to pay $1,895 in federal income taxes
- 401K. . . . Pre-Tax, After Tax, and or Roth??? - 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
- 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 You can withdraw earnings tax-free and penalty-free once the 5-year aging requirement is satisfied and you are 59½ or older or meet one of several exemptions
- 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
- 401k Pre-Tax or 401k Roth? : r personalfinance - Reddit
I’m 27 years old and I’ve been working for 5 years (with the same company) and have been contributing to a 401k pre tax plan every paycheck In 2018 I started a Roth IRA account and have been maxing it out since The 401k is a target retirement fund and the Roth contributions are going towards a total market index fund
- Roth 401k to Roth IRA rollover : r personalfinance - Reddit
If the rollover came from a "designated Roth account" (i e , Roth 401k) the Form 8606 Part III instructions for determining your Roth IRA contribution basis (line 22) tell you to: Increase the amount on line 22 by any amount rolled in from a designated Roth, Roth SEP, or Roth SIMPLE account that is treated as investment in the contract
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