ROTH 401k VS ROTH IRA Which one is Best for Retirement? Tax and Legal Tip

by | Sep 19, 2022 | Vanguard IRA | 30 comments

ROTH 401k VS ROTH IRA Which one is Best for Retirement? Tax and Legal Tip




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This video is about ROTH 401K vs. ROTH IRA and which one may be best in your situation.

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30 Comments

  1. Charles Byrne

    Wouldn't you do both if you could?

  2. Vineel Pusarla

    Hi Mark,
    my llc started in december 2021
    I am not filing taxes and not showing startup expenses for the year 2021 as there is no business activity.
    so can I show start up expenses in my next year tax filing in 2022 taxes?

  3. Fred Howard

    I had a chat with a fiduciary whom I came across today. she’s a pro and we got talking about investment and money. I was in shock when she told me that investing $2000 monthly in ETF and STOCKS with an average of 12% compounding annually in 20 years will give me $1 million. It gets even more interesting. The total contributed is $480,000 whereas interest earned is around $4,224,000. Crazy right! I immediately got investing as I don’t want to miss out on the opportunity.

  4. M Love Spring

    My company starting to offer 401k and Roth 401k in 2022. Should I invest in both or all in Roth 401k?

  5. Daniel Anthony

    I set up a Roth 401k yesterday with my job so are you telling me I'm paying a set up fee for 1200 and I don't know about this ?

  6. Jeremiah Yonemura

    There are few things more dictatorial than the government telling you what to do with your money and that you can't invest more than so much money into a savings account.

  7. Steven S

    Something I've never heard spoken about is whether a 401k holder can withdraw from 401k for a business purchase or expand a current business, create a business loss that year to offset the withdraw?

  8. Daniel Edwards

    I want to put Crypto in a Roth … i want to put in max , one time each year … HOW DO I DO THAT

  9. Beatriz Romero

    @UCHYeaAH3D-wzQyDiXndSfMA where's the link to finding which investment strategies to use besides Roth and IRA?

  10. Carlos Ortega

    Does doordash count as a small business ?

  11. crazykid123321

    if you role over a roth 401k to a roth IRA and wait 5 years can you take the gain from the 401k portion out if you not age 59 1/2?

  12. Enam Hoque

    Hello Mark,

    I am small business owner. I have a question about bookkeeping. I have a self-directed solo ROTH 401k, which i contribute as an employee and as and employer (25% of Gross salary- PRE TAX). My employee contribution is POST- TAX dollars, which my payroll company withheld from my paystub and that money stays in the company bank account. At a later time, the money that was withheld from employees payroll will be transferred to a 3rd party retirement company.

    1. since the company withheld the money on from employee's pay stubs, DID WE CREATED A LIABILITY? how do i record this when the money leaves the company bank account to a 3rd party retirement company? OR
    2. when i make the contribution using the company bank account on the behalf of the employee to his retirement account, and the transaction shows up, HOW DO I CATEGORIZE THE TRANSACTION?

    Thank you in advance for your reply

    Enam

  13. James B

    So to contribute to Roth 401k the contribution has to come from a business?

  14. Aaron Mor

    I’m a teacher and contribute to a 403b plan, but I’m also a realtor. Could I open a Roth 401k that is self directed through my real estate LLC?

  15. The Doctor

    Um confusing maybe??

  16. RunsinTunson

    Being so good at investments doesn't make your penmanship any better, does it?

  17. James Flick

    First of all, borrowing from your 401k is not a smart thing to do. Secondly, why do you think the Government allows a much bigger amount that can be invested in a ROTH 401k? Because it’s subject to RMDs and it’s liable to put you in a higher tax bracket.

  18. Pat Andrade

    I'm a one person S-corp for sidekick jobs I perform, and give myself a 1099 income at the end of the year. If I set up a solo roth 401k for my S corp, can I do employee contributions being a 1099 employee, or do I need to be a W2 employee?

  19. Kate Nguyen

    Thanks so much for the info.
    Can one have both Roth IRA and Roth 401K while working or after retiring?

  20. Curt Christiansen

    You can't borrow from a Roth IRA, but you can do something MUCH better…. You can pull every penny out that you put in…at any time….penalty free. Sure beats borrowing.

  21. Yg Bodybuilder

    Wait a Damm minute u can borrow from Roth ira

  22. TheEazyM3

    One of the bigger cons to Roth 401(k) is the very limited investment vehicles once you have funds in the account. A Roth IRA has many more investment options.

  23. G00GLE CHR0ME

    A big strike against ROTH in most states is that you have to pay state tax up front for all the years you invest….why would you volunteer to pay state tax when you can not pay ANY state tax by waiting long enough (some plans allow exemptions) or you can move to move to a non tax state and only pay federal tax….I"m in NY and I don't know why anyone would pay 4-6 percent in tax for many years when it totally avoidable!

  24. Ben Timover

    Can you combine both and if yes, is there a contribution limit (combined) for the year?

  25. Chelle Padriga

    If I have a 403b Roth is it pointless to also do a Roth IRA? My employer puts in 9% of what my salary is regardless if I put money in or not. I'm no where near the annual limit

  26. Joshua Garner

    My wife's work offers a Roth 401k, they are not a small business

  27. goosecouple

    5500 total?

  28. goosecouple

    That doesn't look like IRA.

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