ST Alpha - "I already have a Roth option. I WANT my pre-tax option. -- nm" (Reading a Post)

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In response to "They don’t mention it in the article, but every proposal I’ve seen to cap pre-tax 401(k) contributions has been paired with requiring plans to offer" by znufrii

I already have a Roth option. I WANT my pre-tax option. -- nm

Posted by ty97 Oct 20 '17, 08:22

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Responses:

can I ask a dumb question? what's the point of capping roth contributions? like, if I'm not tossing cash into a roth, I'll just invest it somewhere. - amanda jones state university Oct 20, 08:25 9
- You pay taxes upfront to withdraw earnings tax-free - znufrii Oct 20, 08:31 4
  - are the ira contrib maxes for employee contrib only? or what employer contribs as well? (obviously I have never maxed anything.) -- nm - amanda jones state university Oct 20, 08:39 3
    - I know the 401k maxes have employee contribution maxes and separate 'total contribution maxes' (about 3x of the employee max) -- (edited) - ty97 Oct 20, 08:45 1
      - 2017: 401k deferral max is 18,000. 401k Annual DC contrib max is 55,000 (employee + employer). IRA/Roth max is 5500. - decline Oct 20, 08:55
    - I don’t think the overall caps would change based on what I’ve heard so far, but really it’s all speculation anyway st this point -- nm - znufrii Oct 20, 08:42
- you are probably phased out of any tax benefit of your roth contribs now. -- nm - decline Oct 20, 08:27
- no taxes on gains when I withdraw? is that it? -- nm - amanda jones state university Oct 20, 08:26 2
  - I'm guessing that's it. You don't pay any capital gains either annually or at withdrawal, which is a nice perk. -- nm - ty97 Oct 20, 08:28
  - yep -- nm - decline Oct 20, 08:27

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