Everything You Need to Know About a Roth IRA and a Roth 401(k)!
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LEARN MORE ABOUT: IRA Accounts
TRANSFER IRA TO GOLD: Gold IRA Account
TRANSFER IRA TO SILVER: Silver IRA Account
REVEALED: Best Gold Backed IRA
Target funds have a high expense ratio. Just contribute to index funds, and start adding more bond funds as you get older.
My employer offers TSP and matches 6 per cent , I am 61
Should I rollover monies into a traditional IRS outside of what I’m currently investing in the TSP? Thanks
LOL @ 7:28 does David Lawrence Ramsey III know you are using his likeness
Moving money from a traditional 401K to a Roth IRA , is called a Roth conversion. Is moving money from a Roth 401K to a Roth IRA , is that still considered a conversion?
Is Prudential a good company to enter a Roth 401k with or would it be a better idea to open a Roth IRA with a different company?
at age 40 and I have a Roth IRA and a 401K Roth IRA. In one tax year can I make contributions of $6,000 into the Roth IRA and $19,500 into the 401K Roth IRA? This would be within the max contribution limits?
I have a Roth IRA with Edward Jones and my employer offers a 401 (k) with a Roth component. I max out the Roth IRA every year and also contribute 2 to 3 thousand dollars a year to the company 401 Roth. The idea is to roll over the 401 Roth into the Edward Jones Roth in retirement and effectively nearly double the entire tax free (interest) amounts. Any problems with that strategy, so far I’ve asked my Tax man and my Edward Jones representative and both say there are no issues.what say you?
Well, I’m switching jobs and have some money in my previous employer plan. If I roll over into a Roth for my new employer plan will I get hit with massive additional taxable income for 2021? Basically, all my prior deductions will get taken away leaving me with a huge tax bill this year?
I make $145k and can’t fund a ROTH ira, what should I do with the $6k i would have contributed?
I have a ROTH 401k also my company has traditional and my company matches 6% my question is. Should I contribute up to the 6% then move over to my ROTH IRA and max that?
The Roth IRA is the most powerful wealth building tool available to hard working Americans.
I have contributed the max amount to my company's 403b and my husband's union offer the pension. We both have traditional IRA b/c we do not qualify for Roth. I am 37 and he is 52. Is it worth it to roll traditional IRA into the backdoor Roth IRA if we have a sizable amount in the acct?
I live in Nebraska which currently tops out at 6.84% state tax. My question is, when I retire, I want to move to a state that has NO STATE taxes, is it better to stay with the original 401k in this case? Since if I go with Roth 401k they are pulling Nebraska state taxes out immediately. But if I go with traditional 401k and move to a state with no state taxes I’ll never have to pay any state taxes in retirement? Is this correct?
Im 41 and can retire at 50. I'll have 31 years at my state job and will get 80% of my pay. I got into my employers deferred Comp plan via T Rowe Price, but that was just 11 years ago and I wasn't putting much in. I recently started adding more, but have a lot of lost time to make up for. My deferred Comp plan is in a targeted 2045 plan, since it's more aggressive. Should I just put more into deferred Comp, or open a Roth IRA and choose high risk to try and maximize my profits?
I currently have $300 a month going into a traditional 457b plan with about 27k in it. Would it be a good idea to also open a roth ira and put that $300 a month towards that instead? I could only contribute $300 a month to one or the other… i don't want to miss out on the compound growth in the 457b plan. Btw, I am not getting a company match, but I will have a pension.
Another difference between Roth IRA and Roth 401k – in the Roth IRA you can always take out your contributions if you need to (although not recommended). In a Roth 401k, your contributions and earnings are mixed, so you have to take a proportionate amount from each and pay taxes and penalty on the earnings portion. Although I believe you can get around this with a rollover into a Roth IRA if your plan allows it and you don't mind waiting 5 years.
wouldnt be a money guy show with britney spears on the right using the phrase "love it, love it, love it"
ill be 37 and been with my company 11 years and when i first enrolled started a traditional 401k with them while i maxed out a roth ira on the side. now they offer a roth 401k. should i start from scratch by leaving the traditional alone at its current balance and start throwing all my contributions into the roth 401k or just keep doing the traditional 401k to build off those 11 years of investment and roth ira on the side to play with pre-tax and after-tax?
Choosing which type of tax advantaged account is based on an individual's circumstances. Roth is not always better. It is important to have tax diversification (e.g. 50/50 Roth/Traditional) because you can never be certain about the difference between your current and future tax rate. See the examples below.
If your tax rate now = your tax rate later, there is no benefit of a Roth over a Traditional, or vice versa. For example, if your tax rate now and later is 20% and you have 10x gains, you end up with $800 from an initial $100 investment, either way.
100*1=100, 100*10=1000, 1000*0.8=800
100*0.8=80, 80*10=800, 800*1=800
If your tax rate now > your tax rate later, then a Traditional is better than a Roth. For example, if your tax rate now is 20% and your tax rate later is 10%, and you have 10x gains, you end up with $900 from an initial $100 investment with a traditional, but only $800 with a Roth.
100*1=100, 100*10=1000, 1000*0.9=900
1000*0.8=80, 80*10=800, 800*1=800
If your tax rate now < your tax rate later, then a Roth is better than a Traditional. For example, if your tax rate now is 10% and your tax rate later is 20%, and you have 10x gains, you end up with $900 from an initial $100 investment with a Roth, but only $800 with a Traditional.
100*1=100, 100*10=1000, 1000*0.8=800
100*0.9=90, 90*10=900, 900*1=900
The choice can also be based on an individual's convictions about the future. If someone believes that tax rates are likely going to be increased by the government in the future, then they might lean toward Roth. If someone is nearly certain that they will be in a lower tax bracket during retirement, then they might lean toward a Traditional.
Note: The other benefits (like no RMDs and penalty-free withdrawals of principal) of Roth IRAs can make the Roth IRA the better option, and then if one wishes to tax diversify, that could be done between the two 401(k) types (note that the company contributions to the traditional account should be taken into the diversification calculations).
Is capital gains from stocks count as earned income? Hence, affects the Roth IRA income limits contribution?
Love all the info. If I contribute 11,000 traditional ira at work and my employer matches 5,500, can i still contribute 19,500 to a roth 401k and 7,000 into roth ira. (age 52)? Also if my spouse earned 8,000, what are her limits? Thanks for all the info.
I'm retiring to Germany. No Roth for me as they do not honor it.
When you are a highly compensated employee you might have limits to how much you can contribute to your roth401k . I didn’t hear you say that
Don't forget that the max contribution for a Roth 401K is $19,500. And there's an extra $6500 catch up after age 50. This year, we will be able to max our Roth 401K out which is great. Turning 50 this year, not so great!
Recently went to your website and used my email to get the resource guides. Been slammed with spam emails from other companies ever since. Did you guys sell my email address? I've opted out of over a dozen soliciting emails this week, and I don't think it's a coincidence in timing.
How do I know what my tax rate
I've been maxing out my Roth IRA every year. My company now offers both Roth and Traditional 401k. Should I choose the Traditional 401k for the tax bucket diversification or keep doing Roth 401k?