Roth accounts are a hedge against future tax hikes and tax rate insecurity. There’s a reason Roth accounts are always subject to elimination every few years, tax revenue from Roth users is far less than from traditional.

2021年12月2日 · Unless you’re an extremely disciplined saver and calculate how much money you saved on taxes with a Traditional IRA and invest that in a different account, you will , end up with more after tax money in retirement with a Roth IRA. Beyond the question of Roth vs. traditional, you have to really think about whether or not saving just $6,000/year is enough for retirement. If you don't have ...

2018年7月4日 · Currently, I contribute 10% Roth and 4% pre-tax. Considering the company's contributions are pre-tax, this comes out to a net 10% Roth and 10% pre-tax. I don't plan on changing the amount I'm contributing (either up or down), but am looking for input on if my contributions should be allocated differently. Thank you!

If you are instead doing Backdoor Roth (I.e. make non deductible contribution to traditional IRA and do Roth Conversion) for previous year, you need to file 8606 in the returns to update the basis of the non deductible contribution made to traditional IRA and since you have already filed, you should skip otherwise you will be double taxed.

2022年11月28日 · Roth contributions (and thus withdrawals) are taxed at your top marginal tax rate (so 24% for your income) because all post-tax money is fungible. Traditional contributions are tax-free, but all withdrawals are taxed at your income tax rate.

A Roth IRA is a tax-advantaged retirement account where you make after-tax contributions and can withdraw those contributions tax-free and penalty-free at any time and for any reason.

2022年3月20日 · Total value of Roth IRA and post-tax brokerage account: 97,540 If he puts the $6000 in a traditional IRA, puts the tax savings in a brokerage account, and keeps both there for 40 years:

2023年9月17日 · Roth IRA Contribution Limits Since you mentioned opening an Individual Brokerage account for investing in mutual funds and index funds, I do want to make sure you're aware that these security types are eligible for your Roth IRA as well.

2024年1月4日 · A few weeks ago I finally opened a Roth IRA with Fidelity, transferred the max yearly contribution over. It was my understanding that the money would sit there and wouldn't grow until I logged in and allocated where I wanted it to be invested myself.

2023年9月7日 · If u can afford it just max traditional 401k for tax benefit and back door 6k into a Roth IRA if your agi is over the Roth IRA income limit. Or split some mix between 401k and Roth 401k. There is no exact switchover point.