re: Question about Tax on Retirement Accounts

When you withdraw money from a retirement account, the amount that is taxable depends on the type of account.

Roth IRAs and Roth 401(k)s are funded with after-tax dollars, so withdrawals are not taxable.

Traditional IRAs and traditional 401(k)s are funded with pre-tax dollars, so withdrawals are taxable. The amount that is taxable is based on your income and filing status.

403(b)s are similar to 401(k)s, but they are offered by certain types of employers, such as schools and nonprofits. The tax treatment of 403(b) withdrawals is the same as traditional IRA and 401(k) withdrawals.

Brokerage accounts are not retirement accounts, so withdrawals are taxable at your ordinary income tax rate.

In your example, if you withdraw $50,000 from your Roth accounts and $50,000 from your traditional/taxable accounts, your taxable income would be $50,000.

If you are considering changing from a Roth 401(k) to a traditional 401(k), you need to consider your current income and your expected income in retirement. If you are in a high tax bracket now, but you expect to be in a lower tax bracket in retirement, then it may make sense to contribute to a traditional 401(k). However, if you expect to be in a high tax bracket in retirement, then it may make sense to contribute to a Roth 401(k).