Roth 401k

81

we have the normal 401k which is pretax contributions, taxes paid when you withdrawl.

we now have a roth 401k which is post tax contributions, no taxes on withdrawl.

anybody done the math one which should pay out better over the long haul?

don't worry...i'll do the math....

anybody else have that option?

:corn:

Black Diamond

81 wrote:

we have the normal 401k which is pretax contributions, taxes paid when you withdrawl.

we now have a roth 401k which is post tax contributions, no taxes on withdrawl.

anybody done the math one which should pay out better over the long haul?

don't worry...i'll do the math....

anybody else have that option?

:corn:

Are you planning on being extremely weathly at retirement and in a hight tax bracket? Then go Roth... If not go regular...

I am optimistic

81

Black Diamond wrote:

81 wrote:

we have the normal 401k which is pretax contributions, taxes paid when you withdrawl.

we now have a roth 401k which is post tax contributions, no taxes on withdrawl.

anybody done the math one which should pay out better over the long haul?

don't worry...i'll do the math....

anybody else have that option?

:corn:

Are you planning on being extremely weathly at retirement and in a hight tax bracket? Then go Roth... If not go regular...

I am optimistic

that's what i was thinking. still need to run the numbers, but it seems like a litle early pain now (taxes) is better than pain later.

i'll throw some assumptions together later and post my results.

kw18

I do both. It's probably overkill, but I like to be on the safe side. My employer contributes to my work retirement account (a 403B, which is the nonprofit version of a 401K), but I'll have to pay taxes on it on withdrawl. To balance that, I set up a Roth account with my bank that will be tax-free at withdrawl but which I'm limited to contributing 5K a year.

Anyone else do that?

he.who.forgets

my thought is why pay taxes on money now that you're not going to see for many years to come? At the rate I'm going, I probably wont live to retirement anyway.

81

he.who.forgets wrote:

my thought is why pay taxes on money now that you're not going to see for many years to come? At the rate I'm going, I probably wont live to retirement anyway.

because when you withdrawl it, it is 100% tax free.

obviously, you need to assume you will...otherwise, why bother saving

he.who.forgets

81 wrote:

he.who.forgets wrote:

my thought is why pay taxes on money now that you're not going to see for many years to come? At the rate I'm going, I probably wont live to retirement anyway.

because when you withdrawl it, it is 100% tax free.

obviously, you need to assume you will...otherwise, why bother saving

i understand that but arent you essentially paying the same tax on it now; your contributions are just pre-taxed, right? Or is it taxed at a higher rate when withdrawing?

81

he.who.forgets wrote:

81 wrote:

he.who.forgets wrote:

my thought is why pay taxes on money now that you're not going to see for many years to come? At the rate I'm going, I probably wont live to retirement anyway.

because when you withdrawl it, it is 100% tax free.

obviously, you need to assume you will...otherwise, why bother saving

i understand that but arent you essentially paying the same tax on it now; your contributions are just pre-taxed, right? Or is it taxed at a higher rate when withdrawing?

you get it...pay tax now....invest...tax free on withdrawl. (roth 401k)

or

no tax now, pay taxes on withdrawl (reg 401k)

tax rates now vs. then depends on your tax bracket and what you think the .gov is going to do with taxes in the future.

he.who.forgets

10-4, that's what I thought. But I say fuck em. I'm not paying them taxes now on $ I may never see. Could die in a car accident on my way home today for all i know. Makes much more sense to live in the present tense
(and I dont plan to ever be wealthy)

kw18

Oh, blerg.

I misread/understood. It's not a Roth 401K I have, it's a Roth IRA. Der. :fp:

But my undestanding is that it's essentially the same,yes? I take my money from my paycheck (after taxes), invest it, then I get to withdraw it tax free, correct?

kw18

he.who.forgets wrote:

10-4, that's what I thought. But I say fuck em. I'm not paying them taxes now on $ I may never see. Could die in a car accident on my way home today for all i know. Makes much more sense to live in the present tense
(and I dont plan to ever be wealthy)

Well, it's worth remembering that if you do die before you have a chance to get that money, it's not like that money will go poof into thin air or into bankers' hands. When I set up my 403B account, I put down beneficiaries. So your loved ones or charity of your choice or whomever will benefit.

81

kw18 wrote:

Oh, blerg.

I misread/understood. It's not a Roth 401K I have, it's a Roth IRA. Der. :fp:

But my undestanding is that it's essentially the same,yes? I take my money from my paycheck (after taxes), invest it, then I get to withdraw it tax free, correct?

correct.

81

kw18 wrote:

whomever will benefit.

hey buddy. :P

kw18

81 wrote:

kw18 wrote:

whomever will benefit.

hey buddy. :P

:fp:

STAYSEA

It's very useful to have 401k.

Even If the math is uneven.

Social Security will be there for us, always



My Government Professor assured me, and so I dropped his class. :thumbup:

He always had mustard stains on his shirts, and it was so distracting.

davidtrios

i have a 401k at work and every yr, we get about a 4% profit sharing bonus put into it. we just got another one last week. however, we are not fully vested until 7 years employeed..

what if i get let go before that time? does my company sell all of those shares they bought with the profit sharing bonus- or just a prorated amount?

he.who.forgets

kw18 wrote:

he.who.forgets wrote:

10-4, that's what I thought. But I say fuck em. I'm not paying them taxes now on $ I may never see. Could die in a car accident on my way home today for all i know. Makes much more sense to live in the present tense
(and I dont plan to ever be wealthy)

Well, it's worth remembering that if you do die before you have a chance to get that money, it's not like that money will go poof into thin air or into bankers' hands. When I set up my 403B account, I put down beneficiaries. So your loved ones or charity of your choice or whomever will benefit.

My 401k is not going to make anyone rich though...my beneficiaries know that

81

davidtrios wrote:

i have a 401k at work and every yr, we get about a 4% profit sharing bonus put into it. we just got another one last week. however, we are not fully vested until 7 years employeed..

what if i get let go before that time? does my company sell all of those shares they bought with the profit sharing bonus- or just a prorated amount?

7 years is a long time to fully vest....

i think...at my last company, if somebody left before being fully vested, those $'s were spread out to accounts of other participants. i coudl be wrong....it's been along time.

kw18

he.who.forgets wrote:

kw18 wrote:

he.who.forgets wrote:

10-4, that's what I thought. But I say fuck em. I'm not paying them taxes now on $ I may never see. Could die in a car accident on my way home today for all i know. Makes much more sense to live in the present tense
(and I dont plan to ever be wealthy)

Well, it's worth remembering that if you do die before you have a chance to get that money, it's not like that money will go poof into thin air or into bankers' hands. When I set up my 403B account, I put down beneficiaries. So your loved ones or charity of your choice or whomever will benefit.

My 401k is not going to make anyone rich though...my beneficiaries know that

Still a good idea to have something. Remember the story of the grasshopper and the octopus ...

81

kw18 wrote:

Remember the story of the grasshopper and the octopus ...

the who and what

kw18

81 wrote:

davidtrios wrote:

i have a 401k at work and every yr, we get about a 4% profit sharing bonus put into it. we just got another one last week. however, we are not fully vested until 7 years employeed..

what if i get let go before that time? does my company sell all of those shares they bought with the profit sharing bonus- or just a prorated amount?

7 years is a long time to fully vest....

i think...at my last company, if somebody left before being fully vested, those $'s were spread out to accounts of other participants. i coudl be wrong....it's been along time.

So basically, the goal is to get vested and then hope for a high turnover amongst staff that have been there for six years? Ah, corporate America.

81

kw18 wrote:

81 wrote:

davidtrios wrote:

i have a 401k at work and every yr, we get about a 4% profit sharing bonus put into it. we just got another one last week. however, we are not fully vested until 7 years employeed..

what if i get let go before that time? does my company sell all of those shares they bought with the profit sharing bonus- or just a prorated amount?

7 years is a long time to fully vest....

i think...at my last company, if somebody left before being fully vested, those $'s were spread out to accounts of other participants. i coudl be wrong....it's been along time.

So basically, the goal is to get vested and then hope for a high turnover amongst staff that have been there for six years? Ah, corporate America.

i could be wrong....

and if they were 6 years, they would keep 6/7th's of the vest. at least that's how my vesting works.

kw18

81 wrote:

kw18 wrote:

Remember the story of the grasshopper and the octopus ...

the who and what

Sorry, Futurama reference. Couldn't resist.

Fry wrote:

It's just like the story of the grasshopper and the octopus. All year long, the grasshopper kept burying acorns for the winter, while the octopus mooched off his girlfriend and watched TV. But then the winter came, and the grasshopper died, and the octopus ate all his acorns. And also he got a racecar. Is any of this getting through to you?

81

:fp:

Poncier

Roth 401k > Hagar 401K

MayDay10

I try to get the yearly max for the standard 401K, then have a separate Roth IRA I contribute if I can.

chadwick

are the family rothschilds the inventors of the roth 401k?

81

chadwick wrote:

are the family rothschilds the inventors of the roth 401k?

i don't think so.

chadwick

81 wrote:

chadwick wrote:

are the family rothschilds the inventors of the roth 401k?

i don't think so.

i would not doubt it for a second.

rothschilds have their own gold bricks...family name stamped on the bars. used to have (& probably still do) rothschilds gold coins

think about it... roth 401k
roth lee david

haha

81

chadwick wrote:

81 wrote:

chadwick wrote:

are the family rothschilds the inventors of the roth 401k?

i don't think so.

i would not doubt it for a second.

rothschilds have their own gold bricks...family name stamped on the bars. used to have (& probably still do) rothschilds gold coins

think about it... roth 401k
roth lee david

haha

The Roth IRA was established by the Taxpayer Relief Act of 1997 (Public Law 105-34) and named for its chief legislative sponsor, Senator William Roth of Delaware.

chadwick

81 you are a champion

however
do you believe everything you read