Listen to how ordinary people built extraordinary wealth—and how you can too. You’ll learn how millionaires live on less than they make, avoid debt, invest, are disciplined and responsible! Featuring hosts from the Ramsey Network: Dave Ramsey, Ken Coleman, Christy Wright, Rachel Cruze, Anthony ONeal and John Delony….(read more)
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Can you take out contributions and earnings whenever for Roth 401k or 5 years for both?
Investments is the best way to find balance between saving and living, This way
you have your savings
intact and then live comfortably off the revenue coming in from your investments.
Financial freedom is possible, you just need to know what to do
and when to do it. I am a living testimony.
Dave,
When you commented on 401k ROTH vs personal ROTH – I didn't hear you contrast the RMD with the two options. Could you elaborate?
When contributing to a 401k roth, the company match is treated as traditional correct? As in, their contribution grows and will be taxed when you take it out, but your contributions grow tax free due to the fact they have already been taxed.
Should I invest in a 401k non matching or an IRA? Thank you
roth Bitcoin ira
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still should max out both if able to – and let it compound and take advantage of tax free growth
Nice video, well I am new to online investments, I have been practicing using a demo account. I like to prepare for my future, I wanna start up a Roth IRA account. I don't know much about it or which is better. I am scared that I don't know enough to start all by myself. I am willing to try, but I need help with what to do next.
From my experience with this, the Roth 401k MATCH is taxable income, but all the growth is tax free.
Fun fact the match is pre-tax either way. A company with give you Roth Matching.
Open the Roth IRA asap to start the 5 years counting. When you leave your current employer you can roll your Roth funds and any post-tax contributions into the Roth IRA.
I max out my Roth 401k and Roth IRA every year. I hope it pays off one day!
Anything I’m or above 22% bracket is best for traditional 401k or traditional IRA. Unless the first bracket becomes 22%, you’ll pay less tax in retirement.
Interestingly, many of those who make to much money to contribute to a Roth IRA will always qualify for a Roth 401(k).
The company match for a Roth 401k goes into the traditional side right?
They didn't mention in order for your roth 401k to be tax free when you withdrawal you must have a roth Ira open for 5 years.
Anyone have input on if the company doesn’t match at all? Would I be better off not investing through company and just get something on my own?
None of this will matter, when the market tanks what this guy has saved will be gone. Should have did an IUL.
such amazing advice on this show i really wish i had learned all this earlier in my life.
Will a Roth 401k directly rollover into a Roth IRA when changing jobs?
The employer might match in pre-tax
Most people are in a higher tax bracket mid career, and will be in a lower bracket in retirement. With a Roth, they're paying more taxes during their working years, and saving less as a result.
I use both Roth 401k and Roth IRA, the $6,000 ira limit is too small
Company match, and then invest in Bitcoin.
I’m not eligible for Roth due to income level. But I do max out traditional 401k. Ramsey should talk about that. Not everyone can or should contribute to Roth. Eligibility phases out with income.
Get your match in your Roth 401k if available, then max your Roth IRAs. You can select whatever investments you want in your IRA whereas your employer might not have good selections. Also, you can withdraw Roth IRA contributions whenever you may need them. After this, go back and max the Roth 401k.
Not true. The 401K likely has higher fees
Does Anthony even listen to the questions? It's like he didn't even hear that the 401K had a Roth option…
ROTH ANYTHING IS BETTER THAN EVERYTHING.
Personally i like IRA better after the employer match. You're not subject to any sudden changes in fees or investment options out of your control. With an IRA, you have way more control.
The money he puts in through the Roth 401k will be post tax. But the match will still have to be taxed.
I do both. Match at work. My part is Roth. And I max my Roth outside work
… there's a big difference on when you can access the account. Roth IRA principal can be accessed earlier than ROTH 401k which can make a big difference if you retire before 59 1/2. While the growth would be same, the actual accounts have some different rules behind them, so please consult a professional and see what works best for your situation
Max 401k
Max Roth IRA
Max HSA
If I’m not good well before retirement I’ll be beside myself.
What if your employer matches a Roth IRA? Would you then chose IRA or 401k
It's not true that fund choices are the only consideration for Roth 401(k) versus Roth IRA, the Roth 401(k) also has additional restrictions such as RMDs that make it inferior to the Roth IRA.
After you get your employer match (whether that's Roth 401(k) or your company only offers Traditional 401(k)), you should immediately turn to maxing out your Roth IRA.
If you make above a certain amount of money do you even get the Roth option?
I have both of the IRA's, and you never have enough savings. Never!
Comment
Get the employer match on the 401k (Roth if available), then Max out the Roth IRA, then back to the Roth 401k for any extra.
The Roth IRA allows you to access contributions penalty free at anytime. The roth 401k will only allow to access contributions as the proportion of contributions to gains. Therefore the Roth IRA provides a bit more flexibility.