Can I Contribute to a Roth IRA and a Roth 401k at the Same Time? #AskTheMoneyGuy
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I choose Roth 401 for the tax break because I have kids
So I can contribute to 401k Roth IRA plus another 6k into self directed up to total no more than 19500.
Quick question.
Do l get to choose my own investments/stocks in a Roth 401K or it’s also target date funds??
4:50 That's the part that I wanted to know. Most info cover only Federal taxes and not state or local tax. It makes a difference if you relocate in retirement.
Where does the Roth 401k land in the financial order of operations
Greetings! I'm trying to decide between Traditional and Roth 401k(s)….the comments/questions/responses are really helpful but I'm unclear as to what to expect with the Roth 401(k) contribution (invest with post-tax money/pay the tax immediately and get no deduction) vs. traditional 401(k) contribution (invest with pre-tax money and get tax deferred deduction but pay later in retirement). I'm unclear what happens immediately when contributing to Roth 401(k). If someone making 85k chooses to contribute 20% in one year and $670 is taken out of each paycheck …will the tax hit with a pre-determined tax rate on each contributed amount (i.e. $670 at the marginal federal tax rate for that salary (24%) before going into the account ($670 – 24%(160.80) => $509.20 deposited ….where no tax will need to be paid in April on this contribution in the following year during tax time. This seems correct but I just want to make sure…it seems a bit presumptuous what bracket someone would end up in as they may earn less in the current year than the previous one. I know what to expect for the tax return of the traditional 401K…It be helpful to understand what to expect during tax time from the income tax return and paying taxes if the AGI not be lowered but the tax already be reported as being paid at the time of contribution (wouldn't want double taxation situation – so either it comes out upfront with each contribution or all at once at tax time) and what exactly will be shaved off each individual semi-monthly contribution to plan for tax implications and audible if necessary.
Great video, I can watch this all day, well I have to say having multiple sources of income is the best peace of mind anyone can get. I have a construction firm that deals on repairs and renovations on buildings, I also decided to go into investment in stock. The firm however for some months has gone down revenue wise, I just manage to pay my workers from the little that comes in. Luckily for me I have my stock to fall back to, thanks to my stock broker Suzanne Stephens Ellis, I do not have to do anything, and I get my returns in due time. Get her valid information and contact online.
Thank you so much for this!!!!!!!! So helpful
I'm single, 49 and moved back in with my folks to help them out due to their health issues in 2012. Mom passed away in 2016. Dad is 80 and doing ok. I don't own a home but don't mind having my dad for a roommate. That way, he's not lonely. I've been debating building a house for the two of us but then learned about the backdoor Mega Roth. My employer is looking into it. They already have a Roth 401K plan. If they make the adjustment so we can contribute based on the Mega Roth, would it be better to postpone building a house a few years (still in inflated pricing territory) to take advantage of maxing the Mega Roth out? That would give me 15 years to pay off a mortgage and retire at 66.
Hey guys, love the show! I am currently maxing out my Roth IRA annually but I am not yet contributing enough to max out my Roth 401k (but I am contributing more than enough to receive the full match). I know that taxable accounts can add a strategic element to a financial plan but if I am not yet maxing out both Roth vehicles, should I avoid taxable accounts until I exhaust my allowable Roth contributions?
should we contribute to both at the same time if I have a Roth 401k and a Roth IRA separately or convert the Roth IRA to my Roth 401k and contribute only to it? thanks
According to w-4 gross income was 240k. Married filling jointly. Husband contribute 12k to Roth 401k and 7k to pre-tax. Wife contribute 1600 to pretax and 1600 to Roth, due to job change and new employer didn’t t offer retirement plan. Did my husband over contribute to Roth do we need to change it….HELP. How much can we contribute to Roth and pretax of income is 240k
Roth 401k or Traditional 401k and then covert into Roth IRA?
I thought one should always pick Roth if they can even in higher tax bracket since it is tax free growth?
Great video! I was wondering if you guys could help me out. I'm 35 yrs old and I have a traditional 401k through my employer where I put 10% and they match 6% so total of 16%. I've been looking at different options and I think I want to do a Roth 401k (in addition to continuing the traditional 401k)…. Not sure if that's possible or the best of both worlds? I live in Utah and my state/federal tax rates are 4.95% and 22% so about a combined 27%. Refinanced my house in April and did it for 15yr so it'll be paid by the time I'm 50 yrs. What do you guys think about my idea of doing a Roth 401k while continuing the traditional 401k? Thanks for reading!
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I am 62 worked in 2020 and then retired. My wife is 58 did not work in 2020. Can I contribute to her Roth IRA for 2020 and at the same time take money from my own 401-k for 2020? Thanks for your help.
How do I ask my employer to offer a Roth 401k?
You can do the backdoor Roth IRA contribution even if your income is higher than the limits. I have both Roth IRA and Roth 401K at the same time. In additional, I do the maximum mega Roth 401K backdoor contribution yearly too. You can put away close to $60K each year into a Roth IRA and/or Roth 401K each year.
Once I’ve maxed out Roth IRA and 401Ks, should I go traditional IRA or a standard brokerage account?
Daddy is about to invest 6k in Roth IRA for this year and start paying on every check for 2021 also daddy is capping 401k anal limit… Papa jee also wants to start investing on ETF, but daddy doesn’t make much so he is driving Uber on the weekend… I hope daddy will be million years
You guys totally contradicted each other about the max income allowed vs ability to contribute to both r401k and rIRA. Can I or can I not contribute to both with a higher income?
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I have a question for you guys and or the comments section. I want to retire early (age 45ish). If I invest a ton of extra money into my Roth 401k and continue maxing my Roth IRA (I’ve had the account 3 years already), and I retire, can I use the money I’ve invested in the 401k as “liquid funds” similarly to the Roth IRA, after rolling the balance over? I just don’t want to max my 401k vice investing in a taxable brokerage account if I’m not able to draw from the contributions until 59.5. Thank you for your help!
I contribute to a defined benefit contribution plan through my employer (state government). This past year I opened a Roth IRA. I can also sign up for a 401k through the state (no match). Am I able to do all three (defined benefit plan + Roth IRA + 401k)? If I can, do i have different contribution limits?
So I have a 401(k) from work through Vanguard, and I also have my own Roth IRA through Vanguard. Could I have a traditional IRA as well, on top of the 401(k) from work and the personal Roth?
Question. My employer matches 50 cents to the dollar up to 6% with my 401k pre tax. Would they match up 50 cents on the dollar up to 6% on a Roth IRA at the same time? Or is that not usually the case with most employers?
I contribute to my company's Roth 401K and I'm turning 50 this year. My question is, for my Roth 401K can I contribute $19,500+$6500(catch-up) and for the Roth IRA contribute $6000+$1000(catch-up) for a total of $33K in one year?
Love watching you guys
@themoneyguyshow roth accounts are beneficial to the owners for obvious tax reasons but they offer no special benefits from an estate standpoint when there is step up availability. In estate cases of step up availability, the trustor would want to draw from the roth accounts in his lifetime and leave the taxable accounts to the beneficiaries since those will get step up in basis. It doesn't make sense to take the tax hit in your lifetime by drawing from taxable accounts just to leave something that was already tax free to your kids. Draw from roth accounts in your life and let step up basis take effect on the taxable accounts to benefit the kids.
Thank you for the answer.
Absolutely, Loved the Video, Surely a couple of unique points compared to other youtube videos. Guys, I have 2 questions that seem pretty basic yet they confuse me and haven't had any other videos address it. 1> Firstly for Married filing jointly, is the Max 401k deductions: 38000 or is the 19000 for the couple. I'm assuming its 38k but have never heard anyone mention this number. 2> With regards to 401k deduction phase-out: if the total income is over 123000 does that mean even if I contributed 10k in 401k would I still be taxed like I was earning 123k instead of 113k, if so would it makes sense to only invest in Roth 401k instead of traditional one at that point. Thanks in advance
I'm a one person S corp for consulting jobs I do on the side, and I give myself a 1099 (not a W2) at the end of the year. If I open a solo roth 401k, can I contribute as a 1099 employee/contractor, or do I need to be a W2 employee?
Can I contribute to my solo 401k from my spouse and myself. At $19k each. If I paid my spouse a minimal salary could I contribute $19k
I have been contributing to a Pre-Tax 457 account for 11 years. Now my employer is offering a ROTH option. Am I going to have problems contributing to both in the same year?
I have both but don’t make enough to max both out. Should I put everything I can into the Roth 401k since the max is higher?
Just did my yearly Roth conversion tonight. Had been waiting all year for the market to drop to save some taxes. I wish we had a Roth 401k option at my employer.