Pretax vs Roth- Which is Better for You If You're in the 24% Tax Bracket?

[@FIRE_DrNinjaTurtle]

I am retired and in the 24% tax bracket. I am still putting money in the ROTH

[@heidikamrath1951]

Don’t you have to have earned income to contribute to a retirement account?

[@mlucera2000]

Including some specific numbers on inheritance tax would be helpful. I know you have to include a caveat because the numbers might change etc. But at least we can have some idea of whether or not we should be concerned. For example, most of us don't have to worry about our heirs being subject to inheritance tax because the federal limits are pretty high and in my case in the state of New Jersey they have been eliminated. You may also point out that there are two kinds of taxes that your heirs might face, the inheritance tax and the estate tax. I realize it's difficult to simplify a very complicated subject. Thanks for doing the podcast.

[@DanKohan]

I really liked this video. It made me think a lot about saving money for when I'm older.

[@MichaelToub]

Great Video!

[@ricorodriguez3579]

Great vid, thanks.

[@leftysidewinder]

The thing about Qualified donations (13:29) is that you had to pay social security taxes when you earned this deferred salary, which could have been 20 years ago, which complicates the cost/benefit of this option.

[@JFreeUNC]

Roth! Tax free money in retirement is great! On the other hand, paying the taxes on Roth conversion chunking in retirement is a real pain. I just cut a $40k check to the IRS on a $200k Roth conversion of pre-tax funds and it was painful.

[@robertryan3490]

Less pain if you do Roth 401k while working and pay the tax as you go.

[@michaeld3812]

I'm concerned about tax bracket issues for my spouse at RMD age if I predecease with a large 401k balance. Eventually the single tax bracket will start and cause a major tax increase. Would it be prudent to delay a pension(w/ 50% survivor benefit)start at the beginning of retirement age 60(with larger payout later) and draw more heavily at the beginning of retirement from pretax accts while also doing large backdoor Roths from 401k to minimize a large balance at RMD age?

[@byronling4666]

Is giving to charity a double tax savings? 1. No tax if it goes from Ira to charity and 2. Charitable tax deduction

[@jerrylabat550]

One point you didn't really emphasise is that your contributions are made at your marginal tax rate but your withdrawals are at your effective tax rate. So even if your withdrawals put you in the same marginal tax rate bracket, your effective rate is still lower.

[@KayKay0314]

She's focusing too much on tax brackets when things are going to be more complex than that. Will they save more if they file jointly or separately? His RMD divisor should be 11.67 at age 73, which means, his RMD is the sum of whatever he has in his IRA compatible accounts divided by 11.67. For every $100,000, he will be required to take $8,568. What if he converts $25,000 per year from an IRA compatible account to a Roth compatible account starting in 2025 for the next 8 years? His RMD taxable gross would be reduced by $17,136 and 25% of that would be a tax savings of $4,284 per year (very rough estimate) starting at age 73. Is that savings worth the effort?

[@WallaceDunn]

I was born in 1957, when do my RMD's kick in?

[@KayKay0314]

It should be when you turn 73 based on your current age

[@CalmerThanYouAre1]

Pre-tax is always the best answer for any tax bracket as long as you invest the current-year tax savings in a Roth IRA or taxable brokerage account. Almost all of these commentaries disregard the tremendous benefit of compound growth on the up front tax savings. Then make a Roth conversion plan approaching and during retirement. Balance with comprehensive tax and income strategy that accounts for pensions, SS strategy and RMDs.

[@chrisrobey77]

Assuming a constant return rate and the same pre and post tax bracket it is mathematically the same. You have to know return rates and your pre and post tax rate to know with absolute certainty. Good luck

[@briand986]

Pre-tax is not always the best answer.

[@FIRE_DrNinjaTurtle]

Love it

[@robertryan3490]

Has anyone ever done Roth and regretted it??

[@marksatterfield]

Too much nothing in the beginning.

[@troyfrei2962]

You can ONLY put soo much money into a Roth each year!

[@brandon8531]

Unless it’s a Roth 401 or Roth 457 option