- 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
401k
Posted on 1/8/20 at 5:48 pm
Posted on 1/8/20 at 5:48 pm
currently have 300,000 in 401k. Company recently added roth to list of options.. Should i continue to contribute pre-tax or switch to roth. have about 15 years till retirement.
Posted on 1/8/20 at 9:03 pm to bluewing
I was advised about 5 years ago to meet the minimum of the 401k, and then flood my Roth. The advisor told me that many of his clients cant really dig into the 401k without getting a huge tax hit. The Roth will allow for a larger sum upfront while living off of the 401k.
I'm putting 11% 401k and 15% Roth.
I'm putting 11% 401k and 15% Roth.
Posted on 1/8/20 at 9:23 pm to bluewing
I would split contributions between the two. That way you have options.
Posted on 1/9/20 at 6:53 am to bluewing
What age are you wanting to retire at?
Do you expect to have a higher income, lower income or the same income level when you retire?
Do you think in general that income tax rates will go up or down in the future?
Do you expect to have a higher income, lower income or the same income level when you retire?
Do you think in general that income tax rates will go up or down in the future?
Posted on 1/9/20 at 8:03 am to bluewing
IMO, you have enough time left (just) to begin hitting the Roth hard, and that should result in you having a decent balance between the two.
Posted on 1/9/20 at 11:40 am to bluewing
Does your company provide a matching contribution? If so, the match portion would already be on a pretax basis, meaning you could still maintain a certain amount of tax diversification going forward even if you contribute 100% towards the Roth.
Posted on 1/10/20 at 5:41 am to bluewing
All my contributions go into Roth 401k
Posted on 1/10/20 at 8:21 am to bluewing
For those that have switched or split between a regular 401k to a Roth 401k, have you seen a change in your take home pay and/or taxes at the end of the yr? I just started splitting this year but I’m hesitant to put more into the Roth until I see what it does to me come tax time next yr.
This post was edited on 1/10/20 at 8:47 am
Posted on 1/10/20 at 8:29 am to GCTigahs
quote:
change in your take hom
Your take home pay is lower with a Roth 401k
Posted on 1/10/20 at 8:37 am to GCTigahs
quote:
For those that have switched or split between a regular 401k to a Roth 401k, have you seen a change in your take home pay and/or taxes at the end of the yr? I just started splitting this year but I’m hesitant to put more into the Roth until I see what it does to me come tax time next yr.
That is easy to calculate. Use your highest marginal tax rate to do the calculation.
For example:
- $5,000 to 401k previously = zero taxes
- $2,500 to 401k = zero taxes
- $2,500 to roth 401k = $705 in taxes (assuming 22% marginal tax rate)
If you don't want your take home pay to change, reduce the Roth contribution so that your Roth + taxes = the amount you reduced the traditional by.
This post was edited on 1/10/20 at 8:40 am
Posted on 1/11/20 at 4:50 pm to Prix560
My understanding is that maxing the Roth first is the better choice for people expecting to be in a higher retirement income tax bracket. Maxing the 401K first is a better choice for those not expecting to pay a lot of retirement income tax.
Posted on 1/11/20 at 6:51 pm to bluewing
Be sure to get any match offered because some don’t match on the Roth side. Then put 50-100% toward Roth account.
Taxes will be higher than current rates at some point and will have ability to control you’re tax rate with Roth distributions
Taxes will be higher than current rates at some point and will have ability to control you’re tax rate with Roth distributions
Popular
Back to top
Follow TigerDroppings for LSU Football News