- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Am I over thinking this...Roth v. Traditional IRA
Posted on 9/6/18 at 10:17 am to ChandlerB03
Posted on 9/6/18 at 10:17 am to ChandlerB03
I feel like everybody is overthinking this. You have 31 years till you are 65. If you put in $5500 this year in a roth and didn't touch that account again, it should be worth at least $65K. I don't care what bracket you are in, I would rather pay tax on $5500 than $65,000.
1
Posted on 9/6/18 at 5:31 pm to leftovergumbo
quote:
everybody is overthinking this. You have 31 years till you are 65. If you put in $5500 this year in a roth and didn't touch that account again, it should be worth at least $65K. I don't care what bracket you are in, I would rather pay tax on $5500 than $65,000.
It's not that simple. $5500 in traditional saves him about $1800 in taxes which could be invested in a taxable account. On the other hand, to put $5500 into a ROTH actually costs about $8100 of pre tax income.
You havent accounted for the tax implications in the contribution year and growth if that difference is invested.
Other ROTH benefits, you can withdraw contributions penalty free if you retire before 59 1/2 and no RMDs.
This post was edited on 9/6/18 at 6:39 pm
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News