Actually tax rates are definitely going to be higher in the future. Demographics

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Apr 8, 2021
4:32:41pm

Nat Gas Man Truly Addicted User

Actually tax rates are definitely going to be higher in the future. Demographics

Alone will dictate it. In my case my taxes are much higher now, no big deductions anymore

One thing for people to realize with 401ks is that government technically has a lien on that money and could change the rules at any time to exercise that control. Not saying they will, but to some politicals that could be too hard to pass up. Whatever the future holds taxes will be higher

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Nat Gas Man

Previous username: TXSmith
Bio page: Nat Gas Man
Joined: Apr 28, 2010
Last login: Aug 23, 2023
Total posts: 53,749 (638 FO)

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Messages

Author

Time

Here's a periodic reminder that for most people, Roth accounts are overrated and people don't look at the big picture

molodyets Mortgage guy in all 50 states

4/8/21 3:02pm

What do you think about living from a Roth IRA/401k while replenishing...

OPINIONS

4/8/21 3:08pm

A backdoor is usually good when you can do it. The issue with talk on Roths is people compare marginal to marginal

molodyets

4/8/21 3:16pm

<< Deleted >>

OPINIONS

4/8/21 3:24pm

I’ve always felt the employer match along with earning % over 30+ years

USMCdad

4/8/21 3:11pm

My understanding is this sentence is incorrect:

JuicyJam

4/8/21 3:12pm

(often/some)times, you're disqualified from ROTH contributions too.

grosven

4/8/21 3:17pm

I argued this same thing with multiple people, for years. I only contributed to

grosven

4/8/21 3:14pm

Roths are incredibly important for the purposes of being able to access retirement funds before 59 1/2.

4/8/21 3:16pm

This is true, I was speaking more towards the generic advice of "if you think your tax rate will be higher in retirement

molodyets

4/8/21 3:19pm

I take advantage of both in the sense of traditional 401k but use Roth IRAs for my wife and I.

4/8/21 3:37pm

Actually tax rates are definitely going to be higher in the future. Demographics

Nat Gas Man

4/8/21 4:32pm

You can access your retirement money before 59 1/2 without penalty

Acorn

4/8/21 4:59pm

What are those requirements?

4/8/21 5:19pm

Substantially equal payments.

Acorn

4/8/21 5:25pm

Cool, I'll check it out.

4/9/21 7:30am

I disagree with most of their logic. It may make sense for the person making the

hansel

4/8/21 3:23pm

They should be converting traditional accounts to ROTH over time (if they are not receiving W2 income).

4/8/21 3:39pm

This article is specifically targeting people that live on much much less than

BYUFootballisBack

4/8/21 3:43pm

I'll read it later, but a 30 second skim looked like some possible bad math.

Byron McNertney

4/8/21 3:45pm

while I think there's something of value in there...

The Shazad

4/8/21 4:20pm

You can't deduct contributions to a traditional IRA if you make more than $125,000 if you are married

4/8/21 3:46pm

Still applicable to 401k choice, and if your wife doesn’t work then you can max her trad IRA

molodyets

4/8/21 3:47pm

If you make more than 208k, you can't deduct spousal contributions either. The choice of 401k applies though

4/8/21 3:57pm

Does anyone know a family with $54k in annual income that is A- looking at early

chrisrenrut

4/8/21 4:44pm

There is a whole community of them that, roughly, fit that description.

4/8/21 4:51pm

My wife and I were in that situation for a year, savings were high 30s - low 40s

BYUFootballisBack

4/8/21 5:03pm

I know I'm late to the party, but these are two great articles to read when talking early retirement

supertux

4/9/21 7:34am

It seems that if you are a high income individual, a traditional contribution with a backdoor Roth conversion is the way

4/9/21 11:00am

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