Mar 20, 2022 · 35-Year Winner: Roth IRA, by just under $7,500. ***Over 40 Years*** If he puts the $6000 in a Roth IRA and keeps it there for 40 years: His 2021 income was $30,000. After the standard deduction of $12,550, his taxable income is $17,450. He will have to pay $1,895 in federal income taxes.

If traditional and Roth are taxed at the same rate (Roth now, vs traditional in X years) they are mathematically the same. However, make sure you think about what the tax rate on that money will be. When you contribute to a traditional now instead of a Roth, this is money that would be taxed at your highest marginal rate.

Max out Roth deferral ~$23k Employer match $12k (4% on $300k just for example) Gross up total to $69k (the 2024 max) with $34k after tax contribution Immediately convert after tax balance to Roth 401(k) Optional-- convert employer match to 401k(k) and pay income tax on the $12k

Sep 12, 2023 · If the rollover came from a "designated Roth account" (i.e., Roth 401k) the Form 8606 Part III instructions for determining your Roth IRA contribution basis (line 22) tell you to: Increase the amount on line 22 by any amount rolled in from a designated Roth, Roth SEP, or Roth SIMPLE account that is treated as investment in the contract.

Jan 23, 2023 · Re buy your favorite tech stocks. 2 taxable things to consider. The Realized losses from the Broke account can be used this tax year. Now... For Roth Contribution tax implications. You have until April to contribute to 2022. I use my Roth account and can buy inverse leverage ETFs, leverage ETFs, options, sell options. Whatever.

Nov 28, 2022 · Roth is almost never the correct answer, outside of some outlier situations. Essentially you need to look at effective tax rates vs top marginal. Roth contributions (and thus withdrawals) are taxed at your top marginal tax rate (so 24% for your income) because all post-tax money is fungible.

Aug 1, 2021 · I’m 27 years old and I’ve been working for 5 years (with the same company) and have been contributing to a 401k pre tax plan every paycheck. In 2018 I started a Roth IRA account and have been maxing it out since. The 401k is a target retirement fund and the Roth contributions are going towards a total market index fund.

Jul 22, 2018 · A Roth IRA is taxed when you submit money into the account, and then can be withdrawn in retirement tax free. The biggest reason to choose a Roth IRA is if you have a low tax bracket now (or perhaps don't pay any tax anyway, like if you're a student and don't earn much income) AND you believe tax bracket will be significantly higher in retirement.

Oct 3, 2021 · I am 22 years old and want to start a Roth IRA as well as personal account for investing. I was considering Fidelity because they have in person branches. I also heard they have an easier online interface to use. However, majority of people are telling me to go with Vanguard – especially because of their mutual funds and ETFs. Any suggestions?

Mar 15, 2022 · Put 5% of your paycheck into your TSP (Roth or regular) Then max out your IRA (Roth or regular) Then max out your TSP (Roth or regular) Putting 5% of your paycheck into your TSP is first because you will nearly double your money there due to agency matching contributions. Then you max out your IRA because you have more flexibility.