Roth accounts are a hedge against future tax hikes and tax rate insecurity. There’s a reason Roth accounts are always subject to elimination every few years, tax revenue from Roth users is far less …

The main difference between a Roth 401K and a Traditional 401K is when you pay taxes. A Roth 401K is funded with after-tax money, but you can withdraw it tax-free in retirement.

Mar 28, 2024 · In a roth or a tradition ira/401k its on taxed once (either when you earn it for roth or when you cash it out for traditional) Ex-$1000 Traditional IRA- no tax, leave it for a long time, grows to 5k, …

Apr 9, 2024 · The 5 year clock on your Roth IRA starts when you open your first Roth IRA, so if this account was your first Roth then that clock is still running. You will have to pay income taxes on …

As you get older and start earning more, though, it makes more sense to switch to traditional (especially since you have the option of supplementing your 401k with a Roth IRA). Traditional also leaves the …

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 …

Feb 22, 2023 · I’m planning on opening a ROTH IRA with vanguard. I’m overwhelmed at choosing what to invest my money in. Help! Any and all advice is appreciated.

A Roth IRA is a tax-advantaged retirement account where you make after-tax contributions and can withdraw those contributions tax-free and penalty-free at any time and for any reason.

Through the mega backdoor Roth IRA, you contribute up to $69,000 yearly to an after-tax 401k, which provides tax-free growth but is taxed at the end at the income tax rate instead of capital gains tax …

Mar 20, 2022 · Total value of Roth IRA and post-tax brokerage account: 97,540 If he puts the $6000 in a traditional IRA, puts the tax savings in a brokerage account, and keeps both there for 40 years: His …