ST Alpha - "But it's not just the rate, right?" (Reading a Post)

SlickerTalk
Search Archives
The Leaderboard
The FAQ

Down to Post

Backboards:

Posts: 155

In response to "it really depends and is somewhat unpredictable. Roth you pay the tax now at your current rate - will that rate be higher, or lower than your rate at " by decline

But it's not just the rate, right?

Posted by ty97 Oct 20 '17, 09:59

In both cases, you pay taxes (at some point) on the money you put in. But in the Roth case, you never pay taxes on any investment gains in the 401k, right?

Responses:

well it depends, the distribution from the roth 401k must be qualified to avoid taxation on the earnings -- (edited) - decline Oct 20, 10:04 5
- I'm trying to decide if I should maybe consider going Roth (but probably wont unless forced) - ty97 Oct 20, 10:06 4
  - you should also consider your net check needs. Maxing a Roth contribution will see a smaller net paycheck every payperiod -- nm - decline Oct 20, 10:12
  - I see a lot of people (in the plans that have both) sort of hedging their bets and contributing to both -- nm - decline Oct 20, 10:09 1
    - [deleted]
  - Here, you want to get a headache? -- (link) - decline Oct 20, 10:07
Correct, if it’s a qualified distribution. -- nm - znufrii Oct 20, 10:00 2
- BAH! This is (FWP) difficult! -- nm - ty97 Oct 20, 10:01 1
  - That’s why I have my spreadsheets! -- nm - znufrii Oct 20, 10:03

Post a message top

But it's not just the rate, right?

Replies are disabled on threads older than 7 days.