New Job, 1st 401K..Questions | TigerDroppings.com

Posted byMessage
CQQ
New Orleans Saints Fan
Member since Feb 2006
12026 posts

New Job, 1st 401K..Questions



Company matches $1 for $1 to 6%. Did I make my selections correctly? I want to do a Roth 401K, right?


Contributions
BEFORE TAX SAVINGS 0% 0%
ROTH BASIC 6% 6%
Pre-tax and Roth Subtotal 6% 6%

NEW START AFTER TAX 0% 0%
After-tax Subtotal 0% 0%

Contribution Amount Total 6% 6%












Back to top
Share:
Chris4x4gill2
Alabama Fan
North Alabama
Member since Nov 2008
2069 posts
 Online 

re: New Job, 1st 401K..Questions


do you have the option of both a standard 401K and a Roth 401K?





Back to top
CQQ
New Orleans Saints Fan
Member since Feb 2006
12026 posts

re: New Job, 1st 401K..Questions


This is what I can see.

Contribution Amount


BEFORE TAX SAVINGS
Current Election 0 %
Desired Election %
(2% to 25% in increments of 1%)




ROTH BASIC
Current Election 6 %
Desired Election %
(2% to 25% in increments of 1%)

Pre-tax and Roth Subtotal
Current Election 6 %
Desired Election %


NEW START AFTER TAX
Current Election 0 %
Desired Election %
(1% to 25% in increments of 1%)

After-tax Subtotal
Current Election 0 %
Desired Election %


Contribution Amount Total
Current Election 6 %
Desired Election %
(2% to 25%)





Your changes will generally take effect in 1 to 2 pay periods depending upon when your employer makes your requested payroll change.








Back to top
  Replies (0)
Volvagia
LSU Fan
Baton Rouge
Member since Mar 2006
41210 posts

re: New Job, 1st 401K..Questions


What is your salary?

(It matters for Roth consideration)

Odds are if it is your first 401k offering position, you want a Roth, exclusively



This post was edited on 2/11 at 9:47 am


Back to top
  Replies (0)
Volvagia
LSU Fan
Baton Rouge
Member since Mar 2006
41210 posts

re: New Job, 1st 401K..Questions


quote:

do you have the option of both a standard 401K and a Roth 401K?



Why would you want this?

The employer contributions into the Roth 401k is pretax like a standard 401k

So you get both in one within a Roth.






Back to top
CQQ
New Orleans Saints Fan
Member since Feb 2006
12026 posts

re: New Job, 1st 401K..Questions


quote:

Volvagia


So you're saying I have it right? Starting salary is $45000 with a 2-4% raise and 2-4% bonus yearly, depending on how the company performs.






Back to top
Volvagia
LSU Fan
Baton Rouge
Member since Mar 2006
41210 posts

re: New Job, 1st 401K..Questions


Im saying its rather complex and highly individualized.

If you think that you will be paying a higher tax rate in retirement than you are paying now, then the Roth 401k is a godsend.

It is good for diversifying your tax exposure though either way.

Remember, you are paying 25% on the money you are contributing to the Roth, vs being able to deduct that money by contributing to the traditional 401k.

I am personally a big fan of Roths...but that is me.






Back to top
  Replies (0)


Back to top