ROTH IRA VS ROTH 401K

[@JasonBuckman]

I max my Roth IRA every year. My second two jobs have Roth 401(k)'s I put the max allowed per check (one allows all and the other allows 75%). I put up to the match on my main job into a pretax 403(b) (that's 2%). Near the end of the year, if I haven't put in enough to do the maximum contribution, I up my pretax 403(b) the get to the maximum. Yes, I have three jobs.

[@SOM-inc.]

Love you guys.

[@turner111971]

I have 401k and 401k Roth with my employer. Contributed to the pre-tax for about 10-12 years, then started contributing to both. As of now the balance of everything is broke down like this.. 82% is in pre-tax and 18% is in Roth. Contributing now at 8% Roth and 4% Pre Tax....I'm 52 and planning about 10 years left to work. How should i proceed? Ideas? Thoughts? Thank you.

[@SurpassMoney]

I’m in the same boat. My employer only started a Roth 401k 2 years ago. So the bulk of my 401k is pre-tax. I’m doing fully Roth 401k because the company match only goes to the pre-tax bucket. So about 25% of my total contributions is going pretax whether I want it to or not. So I’m already getting the tax diversification. Based on what you said I’d go full Roth 401k because of all the pretax you already have. Especially now while tax rates are low. If they revise up in 2026 than you may want the pretax tax break.

[@turner111971]

@@SurpassMoney Good information, thank you.

[@turner111971]

@@SurpassMoney Good information. But even though you put it all in Roth, they still do the match it just goes into pretax? I wonder if it’s the same with my employer…Thank you.

[@henrynguyen4132]

Am I missing something? Here is my assumption, at current working with high income and high income tax at 30%; however, at retirement, the income is lower and income tax is at 20%. With those assumptions, if I set aside $1,000 for retirement and invest with 6% return. At 20 year later, for regular 401K and $1,000 investment, I should get $3,207. At withdraw and pay 20% income tax, I would take home $2,566. If I choose Roth 401K, I have to pay 30% tax of $1,000. Therefore, I only have $700 for retirement investment. At 20 year later and 6% return, when I withdraw (with no income tax), I would get $2,245. Based on this math, it looks like Traditional 401K is better than Roth 401K ($2,566 versus $2,245). If people think that their overall income at retirement is lower and their income is lower compared to while they are working, maybe traditional 401K get a better return than Roth 401K. Am I missing something in my calculations?

[@jasonmathews1685]

Thank you

[@marksrink]

I am an independent contractor wirh a 1099, can i open a 401k roth?

[@randallcotner1258]

Mark, my IUL, with the index I'm using, is one part of my overall retirement strategy. Your use of the word "Better" is subjective at best. Among other reasons, I do value my IUL because it won't lose value during market downturns. The worst my contract allows for is a positive 1/4% rather than losing like the IRA's and 401Ks have with my friends and some family. True, theirs were not self directed, and that makes a big difference. However, they're not the kind of people who want to manage their retirements, rather simply enjoy retirement. When their retirements took huge hits, I did not, and that is "Better" for me to not lose money. Great job on everything else though Mark:)

[@gusjaramill0]

Not sure if your IUL does livings benefits and all but, great comment. You drop the 🎤 and no one picked it back up. lol

[@drock5108]

What happens if u pass away at 60 and have all the money invested in that. Don’t u lose that invested money and your family only gets your life insurance policy? So they could possibly lose a lot of money? I was told that’s a bad bet.

[@randallcotner2155]

@@gusjaramill0 Wow, that vid was from a year ago. Yes, the policy has true living benefits, which is one of the reasons I chose it, even if the term option also had them.

[@randallcotner2155]

@@drock5108 Lord, that video was from a year ago. Didn't know anyone took the time to look at comments a year old. There are two options if a person dies early, rather than living too long or getting very sick in the middle. One, they only get the death benefit if that option best meets their specific needs. Or, they can get both the death benefit and the cash value that's built up. It's merely a function of what best meets their needs. It's nice to have that flexibility and to even change it at some future point as well. Lots of people may tell you a lot about what they don't understand, often due to only looking at the surface level rather than unpacking a situation to gain a thorough understanding. It happens all the time:)

[@bendecido666..]

How to convert brokerage account to roth ira

[@emmanuelarredondo5365]

"get on base" what does that mean?

[@MatSorensen]

Ha. It’s a quote from the movie Moneyball. It’s about just getting on base and acting runs. Not swinging for the fences to hit a home run. Same applies to investments. Make easy investments and shoot for 10% or so and be careful swinging for the fences hoping for 1000% on the next long short startup or crypto.

[@devnullbit]

should i split the 401k with 401k ira

[@damondiehl5637]

A 401k is a retirement plan offered by your employer An IRA is something you set up by yourself by going to a company like Vanguard or Fidelity or ETrade and setting up an account.

[@rodf1021]

could I as a parent invest into a Roth IRA for a minor or do they have to be employed?

[@damondiehl5637]

You must have reportable income.

[@DannaOwen]

Yes, a minor needs to have earned income. Do you own a business or have a side hustle? Are you paying your kids for working in your business? If not, we can help you get this going.

[@Bobventk]

Christmas isn’t in the fall lmao

[@Bobventk]

Trashing on stocks and mutual funds… 🚩 🚩

[@jh20060101]

Be a good teacher and explain the definition clearly. No patient to listen a short cut definition. Or you may not clear yourself.