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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
- 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
- Is a Roth 401(k) clearly better than a Traditional 401(k) or . . . - Reddit
If traditional and Roth are taxed at the same rate (Roth now, vs traditional in X years) they are mathematically the same However, make sure you think about what the tax rate on that money will be When you contribute to a traditional now instead of a Roth, this is money that would be taxed at your highest marginal rate
- SO Confused About How to Actually Invest my Roth IRA
I’m new to Roth IRA with Fidelity and cannot trade I see the Trade option but when I go there and choose a stock, it has the Open an Investing Account button I don’t know what I’m doing wrong or how they’re setting up my account
- 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
- 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 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
- 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
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