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Talk me out of going 100 percent into Roth 401K vs regular

Posted on: December 14, 2020 at 11:45:13 CT
TigerFan92 STL
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If I am putting the max $26K+ per year into a regular 401K I like the tax break ($500+/month?) but the future tax hikes could really hurt the retirement account value as it is pulled out.

Also the company's match portion has to go to the regular 401K side anyway which is $10-20K depending on ESOP

And my total regular 401K balance is high enough since it will likely double by the time I retire in 10 years +/-. I'm thinking I need ways to offset how much I pull out at a time to work around SS and Medicare fees.

My worry is the commies may end up finding a way to tax Roth accounts as well in the future ??

Paying more taxes now sux but I think I need to take the hit correct ??? The AARP calculator keeps saying it is about a 5% better overall return to go with traditional but I don't think that accounts for flexibility savings

This is interesting and I am guessing the more you make the more it is true
https://docs.google.com/spreadsheets/d/1EZ4ig90jgVgAnPKzBxbM1uPSO8mu5dWiHbXkV0cUicU/edit#gid=0


Edited by TigerFan92 at 13:24:40 on 12/14/20
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Talk me out of going 100 percent into Roth 401K vs regular - TigerFan92 STL - 12/14 11:45:13
     Here is the problem I have run into on contributing more - MU-TULSA MU - 12/17 13:24:52
          So you have a general investment account tied to the 401k? - TigerFan92 STL - 12/17 22:46:30
               You should be able to retrieve all of your Roth 401k deposit - tiger4real MU - 12/18 14:17:38
               Well the problem occurred when they sold the company and - MU-TULSA MU - 12/18 10:17:49
          HSAs are a great thing - meatiger MU - 12/16 15:53:59
               Only had it two years so I am the max $5K times 2 - TigerFan92 STL - 12/16 19:32:39
                    yep..did same thing - meatiger MU - 12/16 22:37:43
          Your break even age is about 78 - tiger4real MU - 12/16 15:16:57
               That is why I might take it early(nm) - TigerFan92 STL - 12/16 19:34:14
               Sorry meant for below(nm) - tiger4real MU - 12/16 15:21:08
          yikes that is exactly what I am worried about but good - TigerFan92 STL - 12/16 13:41:59
               RE: yikes that is exactly what I am worried about but good - scan MU - 12/16 13:59:25
                    got it. likely similar but I don't think i'll get a package - TigerFan92 STL - 12/16 19:33:46
     Yes, I support this decision. - tiger4real MU - 12/15 20:26:32
          That is true. Roth benefits the lower income more so the guv - TigerFan92 STL - 12/16 10:38:26
     You hit the one big negative (potentially) of a Roth. - GA Tiger MU - 12/15 19:10:12
          I have some dividend and will transfer more that way when - TigerFan92 STL - 12/16 10:40:34
     I think you are on the right track.....need three buckets to - Sarazen KC - 12/14 18:08:37
          Agree. I think what compounds the challenge is if you retir - TigerFan92 STL - 12/15 09:09:29
               The problem with "taking it easy" late - meatiger MU - 12/15 14:58:57
                    That's me I am debt free and my 401K is plenty high if I - TigerFan92 STL - 12/15 17:18:06
                         if you want to retire early - meatiger MU - 12/15 21:01:04
                              yeah trying to figure it out is a challenge but saves $ - TigerFan92 STL - 12/16 10:36:21
                                   Your decision about what to do now is not - Sarazen KC - 12/16 15:22:50
                                        Once you put money in a tax deferred account - meatiger MU - 12/16 15:52:29
                                             You can revisit your decision on percentages going - Sarazen KC - 12/16 23:10:13
                                             I think he is saying if I am 25-75 Roth-Traditional that nex - TigerFan92 STL - 12/16 19:35:48
                                                  yes.. - meatiger MU - 12/16 22:36:31




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