Today we’re talking about one negative reason to max out your 401k. While no one can argue about one that wants to aggressively save for retirement, we do want to consider the tax consequences along with other investment options. Today, we’ll go through an example of how your social security benefits could be partially taxed when trying to live on $50,000 a year in retirement as well as show some alternative withdrawal strategies using Roth IRA’s or Roth 401k’s.
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Government screws you over no matter what you do
What about a Roth 401k?
Hello I have to question I’m new to this i have 401 k and Roth IRA. Is it wise to invest some in a ETF before maximizing the 401 k then ofcouse I max my Roth IRA every year. . Can someone please advise
Max it out so the stock market can crash and take it all … f that ..
Awesome video.
Can I got your phone number please I got some questions?
We have to put the max in our 401k otherwise we would be in high tax brackets since we don't have any other debt.
I dont get it; either way you pay taxes on ROth too since you are putting in taxed money into ROth.
Max it out if your employer offers a Roth 401K.
So….the Government considers the rich as making over $32k a year….
Dial it to 11 with mega backdoor 401k
Wouldn’t it be best to max out your 401(k), even if no employer match, for the tax deduction, and later you can roll it over to a Traditional IRA and set up a Roth IRA conversion ladder or similar? (Converting the appropriate amount each year so as to minimize your tax bracket)
So if I have a Roth 401K but no match, should I be maxing it out or should I be maxing out other retirement avenues first? I understand with a Roth IRA you can withdraw principle without penalty, but I'm not looking to withdraw anything prior to retirement. Haven't been able to find information on this anywhere.
Fidelity Roth IRA is easy to setup. Took minutes…I even signed up both daughters each of their own because they have a small part time job.
I don’t believe Social Security is be here by that time.
I currently max out my Roth IRA and am contributing 22 percent pretax to my traditional 401k. My employer recently offered Roth 401k. Curious if I should split contributions between the traditional 401k and Roth 401k?
Fu%%#*king great info bro like it
Max out 401k Roth!
Can you give a scenario why anyone would chose a traditional over a Roth. Every scenario I run Roth wins by a large margin.
This makes sense for people in the low tier tax bracket. So wish I was smarter years ago and used Roth.
Max the traditional 401k, retiring at 55 with irs rule of 55. Use the tax savings for roth IRA
moving 401k to roth IRA,do you have to pay the taxes on the 401k?
Yup.
I started my 401k in 1987 three months before Black Monday.
When they gathered all of us new hires to explain all of our benefits back then I asked that 401k representative what happens over 30 years from now and did not like what I heard.
Fortunately we had aftertax as well as pretax so I maxed out aftertax and when the Roth was included I maxed that out as well.
Not only did I max it out but also contributed up to more than $45k each year.
Not many people can say they have over 1.4 million in a Roth.
Social security wont be around 40 years later when i retire
Would love it if you provided more examples with say Dividend income and other taxable incomes such as Real Estate. Future video content I hope!
Btw that blackboard is super hard to read. Whiteboard please.
I max out 401k, Roth IRA, HSA, taxable brokerage account, 529, figure out taxes later. Uncle Sam taxes a lot now and will tax a lot in the future just concentrate on earnings and maximizing your growth
I clicked on to see if you were going to say one reason is to make sure you max out the HSA first. Dang, oh well, I am still doing that plan. Great Vanguard funds on the investment side of my HSA plan.
Can I even open a Roth? I was a stay-at-home mom and I get an "allowance" from my spouse, obviously tax-free 😉 My spouse has his own Roth and investments. I am unable to work now due to chronic illness. (Which was so not in the plan!) I even went to nursing school with 6 kids still at home, got my R.N. and BAM! struck with paralyzing illness.
Another thing to keep in mind is these calculations are based on current rules and regulations. Those can change over time.
Do ROTH now because probably by the time I retire , Marxists will be running the country and tax rate of 50% or higher.
Good advice buy real estate these bs tax shelters are for people who never took a risk.