The most prestigious law school admissions discussion board in the world.
|
 |
 
|
Does it make sense to have both a Roth IRA and a 401k?
Poast new message in this thread
Date: June 17th, 2019 11:03 AM Author: disturbing cordovan location I have just the 401k and contribute up to the employer match, but it’s not enough to retire comfortably. Should I just build up a liquid savings account and maybe increase contributions to the 401k or should I open a Roth IRA? I also have an HSA btw. (http://www.autoadmit.com/thread.php?thread_id=4284557&forum_id=2#38400303) |
Date: June 17th, 2019 11:11 AM Author: Stimulating tantric gas station If you have the disposable income, no reason not to. I max out every possible vehicle and I like the Roth IRA over the 401k as it's not employer-controlled (http://www.autoadmit.com/thread.php?thread_id=4284557&forum_id=2#38400338) |
|
Date: June 17th, 2019 11:13 AM Author: Laughsome son of senegal business firm You should max out the employer 401k which I think is $19k per year then start funding your other accounts. (http://www.autoadmit.com/thread.php?thread_id=4284557&forum_id=2#38400344) |
 |
Date: June 17th, 2019 11:14 AM Author: disturbing cordovan location why max out the 401k? assume I want to quit the working world before 59.5 or whatever arbitrary nonsensical age determined by the IRS (http://www.autoadmit.com/thread.php?thread_id=4284557&forum_id=2#38400350) |
|
Date: June 17th, 2019 11:17 AM Author: curious erotic circlehead If you want to quit early you need to be maxing both, and probably saving some on the side. This assumes a wife, one or two kids who are completely self sufficient, and a middle class lifestyle. (http://www.autoadmit.com/thread.php?thread_id=4284557&forum_id=2#38400373) |
|
Date: June 17th, 2019 11:19 AM Author: Stimulating tantric gas station the 401k, like all pre-tax stuff, is for when your income is lower than current. I like the Roth stuff, as I put my big longterm bets in it, as there's no income tax at point of withdrawal (http://www.autoadmit.com/thread.php?thread_id=4284557&forum_id=2#38400383) |
|
Date: June 17th, 2019 11:20 AM Author: rose windowlicker Interesting strategy (http://www.autoadmit.com/thread.php?thread_id=4284557&forum_id=2#38400389) |
|
Date: June 17th, 2019 11:22 AM Author: disturbing cordovan location what do you mean "income lower than current"
|
|
Date: June 17th, 2019 11:26 AM Author: curious erotic circlehead Withdrawals from a regular 401k are taxes as regular income. So if your income is higher upon withdrawal you'll actually pay a higher rate of tax. Practically speaking this rarely happens. (http://www.autoadmit.com/thread.php?thread_id=4284557&forum_id=2#38400428) |
|
Date: June 17th, 2019 12:14 PM Author: disturbing cordovan location It seems rather likely that my income will be higher on withdrawal though. It’s not like I’m going to accept a lower paying job as I age. (http://www.autoadmit.com/thread.php?thread_id=4284557&forum_id=2#38400612) |
|
Date: June 17th, 2019 12:15 PM Author: curious erotic circlehead Why are you withdrawing while you're still working. (http://www.autoadmit.com/thread.php?thread_id=4284557&forum_id=2#38400616) |
|
Date: June 17th, 2019 12:16 PM Author: disturbing cordovan location I’m not...idk I guess I’m confused (http://www.autoadmit.com/thread.php?thread_id=4284557&forum_id=2#38400620) |
|
Date: June 17th, 2019 2:23 PM Author: Odious crawly preventive strike The point is you begin to withdraw at 65+ when you have retired and are therefore in a lower bracket (http://www.autoadmit.com/thread.php?thread_id=4284557&forum_id=2#38400990) |
|
Date: June 17th, 2019 3:34 PM Author: disturbing cordovan location But I want to retire at 50, not 65 (http://www.autoadmit.com/thread.php?thread_id=4284557&forum_id=2#38401273) |
|
Date: June 17th, 2019 3:15 PM Author: maize cowardly set (Henry Aaron) (http://www.autoadmit.com/thread.php?thread_id=4284557&forum_id=2#38401219) |
|
Date: June 17th, 2019 11:22 AM Author: Laughsome son of senegal business firm Presumably because the tax benefits outweigh the 10% penalty for withdrawing early
I believe you can withdraw 401k funds anytime, with roth 401k funds you just have to pay 10% and 401k you pay the 10% and the rest is considered income that is taxed at normal rates |
|
Date: June 17th, 2019 11:28 AM Author: curious erotic circlehead No. Withdrawals from 401ks are very limited. They depend on the plan but it's usually limited to a loan to yourself, with a common limit of 50k.
With a Roth you can withdraw your contributions.
It's much easier to withdraw from an IRA. |
|
Date: June 17th, 2019 2:27 PM Author: Greedy space dragon Can’t u convert the 401k and withdraw? (http://www.autoadmit.com/thread.php?thread_id=4284557&forum_id=2#38401001) |
|
Date: June 17th, 2019 12:55 PM Author: irradiated trust fund market The answer depends on your top marginal tax rate. (http://www.autoadmit.com/thread.php?thread_id=4284557&forum_id=2#38400770) |
|
Date: June 17th, 2019 2:10 PM Author: disturbing cordovan location Just realized you can’t even open a Roth if your salary tops 130k. Lol. (http://www.autoadmit.com/thread.php?thread_id=4284557&forum_id=2#38400968) |
|
Date: June 17th, 2019 2:24 PM Author: Greedy space dragon U can backdoor (http://www.autoadmit.com/thread.php?thread_id=4284557&forum_id=2#38400991) |
|
Date: June 17th, 2019 3:36 PM Author: irradiated trust fund market (http://www.autoadmit.com/thread.php?thread_id=4284557&forum_id=2#38401280) |
|
Date: June 17th, 2019 12:58 PM Author: sooty arousing blood rage Yes. Look at a Roth as an agreement not to withdraw until 60 or whatever in exchange for paying no capital gains taxes.
It’s worth it for anyone making a decent amount |
|
Date: June 18th, 2019 7:02 AM Author: Stimulating tantric gas station this is basically it (http://www.autoadmit.com/thread.php?thread_id=4284557&forum_id=2#38404306) |
|
Date: June 17th, 2019 7:35 PM Author: Saffron razzle-dazzle dingle berry fanboi Yes, see above. When a dem gets elected, that are going greatly increase cap gains taxes. They won't touch Roth, so you should shovel all the money you can in there (http://www.autoadmit.com/thread.php?thread_id=4284557&forum_id=2#38402500) |
|
Date: June 18th, 2019 2:55 AM Author: Big orchid azn indian lodge https://wealthyaccountant.com/2019/06/17/investing-in-a-retirement-account-is-like-taking-out-a-loan/ (http://www.autoadmit.com/thread.php?thread_id=4284557&forum_id=2#38404113) |
|
Date: June 18th, 2019 6:34 AM Author: disturbing cordovan location ty. (http://www.autoadmit.com/thread.php?thread_id=4284557&forum_id=2#38404283) |