This makes Roth plans completely different from other tax-sheltered retirement plans, such as traditional IRAs and regular 401(k) plans. All otherretirement plansare merely tax-deferred. That means that, while you get generous tax benefits during the accumulation phase of the plan with a 401(k...
The exception is if you can commit to investing the tax savings from the traditional 401(k) contributions you make each year — which you'd need to do in a separate account. If you do that, this debate becomes largely about comparing ...
Oh Sorry, it should be 32819.44 and yes it’s the traditional IRA since i left the company and i rolled over all the 401k money to traditional IRA (pre-tax) . so it’s 60,718.90 – $32,819.44 = 27899.46 rolled over to traditional IRA. It seems this roll over contains 401k contribut...
” And the answer, unfortunately is, it depends. It depends, really, on what your goals are,what you’re trying to accomplish. What are you investing the Roth in, versus the IUL?
I love the benefits of a Roth IRA and contribute to that versus a Traditional IRA. I just fulfilled my $5,000 max for tax year 2011, and would like to contribute for 2012 soon. But, it looks like my AGI will be increasing close to, if not over the $122K maximum for 2012. What...
immediately rolled over to a Roth IRA. I can’t figure out where to input my Self employed 401K contributions in the software. It’s a 401K plan so my contributions should be pre-tax and I should be able to do the roth conversion without getting taxed pro-rata. Do you have any ...
between Roth IRAs and Traditional IRAs is their tax structure. Contributions to Traditional IRAs are made with pre-tax money and withdrawals are taxed at the individual’s current income tax rate, while contributions to Roth IRAs are made with after-tax money, but withdrawals are tax free. ...
The most likely source of income for most people is their 401(k), which wasn’t factored in here. Most 401(k) contributions are made pre-tax, meaning that they’ll be taxed when they’re withdrawn. That increases the amount of taxable income you’ll have in retirement. ...
Note:If you convert pre-tax money from a Traditional IRA to a Roth IRA,you have to wait 5 yearsbefore you can withdraw that money without penalty. 3. Penalty-free for college Your Roth IRA balance above and beyond the amount you’ve contributed is called yourearnings. These earnings come...
You may decide to recharacterize both of the Roth accounts and instead use the tax-free space you have available totax-gain harvestinstead (note: you’d have to make this decision before the end of the calendar year, since you wouldn’t be able to wait until year two to harvest your ...