ST Alpha - "You pay taxes upfront to withdraw earnings tax-free" (Reading a Post)

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In response to "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. " by amanda jones state university

You pay taxes upfront to withdraw earnings tax-free

Posted by znufrii Oct 20 '17, 08:31

So they’re trying to push people into paying more taxes upfront by capping pre-tax contributions, which are tax deferred, so they can give a bigger tax cut to the rich.

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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

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You pay taxes upfront to withdraw earnings tax-free

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