quote:
As for, "not getting the benefit at all" well you do receive a benefit if you die with money in your ROTH, that is, that money has grown more to be inherited by your heirs if you're into that sort of thing I suppose. But either way what benefit would you receive if the opposite were true? You're fricking dead.

Is any non-Roth 401K money, left over after you die, taxed as normal income to your heirs?

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Posted by baldona

Florida

Member since Feb 2016

20521 posts

Posted on 5/27/16 at 8:59 am to Y.A. Tittle

Yes I'm only in my 30s, but I have an Llc I have a Sep-Ira in, we both have a Roth, and my wife and I both have 401k options at work though they are unmatched. There's not very many people that can max both 401ks and Roth financially. So while tax advantages now are important, I don't think it's off base to additionally plan your taxes when you retire. Obviously in 25-35 years the tax codes could change drastically, but I'm not going to
Not plan.

My questioning is because at the beginning of every year I'm usually holding $4-5 k that i saved from good budgeting from the year before and I'm looking to invest since I have until April of the following year. In years past it has been all into my Roth's, but maybe I should look to put more into my SEP. Maybe I'm just over thinking it.

This post was edited on 5/27/16 at 9:07 am

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Posted by baldona

Florida

Member since Feb 2016

20521 posts

Posted on 5/27/16 at 9:05 am to Y.A. Tittle

quote:
Is any non-Roth 401K money, left over after you die, taxed as normal income to your heirs?

I'm assuming it counts to the individual max of $5.5 mil to pass down no different than anything else? There are additional restrictions on retirement money passed down though like I believe a percentage has to be withdrawn by the heirs.

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