I need advice on 401K

[olroadbeech]

Either one is good. I only plan on touching 401 for special purchases. Pension and SS will cover expenses with plenty to spare.

me the same. let the 401k grow, grow, grow. just got off the phone with prudential and they told me , ya you can keep your account with us even though you left the company. I wasn't sure, didn't want to have to rollover anyway.

he said , just like an IRA, I would have to take mandatory dist. out at 70 and a half. which we already knew , but don't have to take anything out for 10 plus years if you don't want to.

sweet.

 

[upschuck]

I will explain later.

Still waiting.

 

[IVE GOTTA PACKAGE 4U]

Still waiting.

When I go to lunch iwill explain it

 

[Turdferguson]

When I go to lunch iwill explain it

So what you are saying is you won't explain it because everyone knows you are a lunch skipper runner gunner

 

[upschuck]

When I go to lunch iwill explain it

Is that Apple's version of will?

 

[IVE GOTTA PACKAGE 4U]

Still waiting.

Let's try this example. If you contributed 100k during the course of your career at the 20% tax bracket you saved 20k in taxes. Now let's say your ending balance is 300k and you are still in the 20 bracket you would pay 60k in taxes.

Take 60k minus the 20k you originally saved. That means you paid 40% on the original 100k

Take the same example with the ROTH.
You paid 20k in taxes on the same 100k
But now its worth 300k no taxes due.

Now take 300k ÷ 20k. Less than 7%

 

[Brownslave688]

Let's try this example. If you contributed 100k during the course of your career at the 20% tax bracket you saved 20k in taxes. Now let's say your ending balance is 300k and you are still in the 20 bracket you would pay 60k in taxes.

Take 60k minus the 20k you originally saved. That means you paid 40% on the original 100k

Take the same example with the ROTH.
You paid 20k in taxes on the same 100k
But now its worth 300k no taxes due.

Now take 300k ÷ 20k. Less than 7%

 

[IVE GOTTA PACKAGE 4U]

View attachment 47139

I don't care.

 

[upschuck]

Let's try this example. If you contributed 100k during the course of your career at the 20% tax bracket you saved 20k in taxes. Now let's say your ending balance is 300k and you are still in the 20 bracket you would pay 60k in taxes.

Take 60k minus the 20k you originally saved. That means you paid 40% on the original 100k

Take the same example with the ROTH.
You paid 20k in taxes on the same 100k
But now its worth 300k no taxes due.

Now take 300k ÷ 20k. Less than 7%

In your example, you don't put the same amount in. 20% less than the 100k is 80k and triple that like in your example, and equals 240k, surprisingly the exact same amount as the 300k - the 60k in taxes.

 

[IVE GOTTA PACKAGE 4U]

In your example, you don't put the same amount in. 20% less than the 100k is 80k and triple that like in your example, and equals 240k, surprisingly the exact same amount as the 300k - the 60k in taxes.

Wrong

 

[upschuck]

Wrong

What is wrong. You are not putting in the same amount.

 

[IVE GOTTA PACKAGE 4U]

What is wrong. You are not putting in the same amount.

You are only paying 16k on the ROTH. In your example it was 80k
.not to mention the taxability of your S.S.

 

[Brownslave688]

wrong thread. Lol

 

[IVE GOTTA PACKAGE 4U]

My example was putting in equal money. Don't bend the facts.

 

[Brownslave688]

My example was putting in equal money. Don't bend the facts.

There an obvious advantage otherwise it wouldn't be offered.

 

[upschuck]

My example was putting in equal money. Don't bend the facts.

That is where we are differing. I was saying same take home pay.

 

[Turdferguson]

Wrong

What is wrong. You are not putting in the same amount.

You are only paying 16k on the ROTH. In your example it was 80k
.not to mention the taxability of your S.S.

My example was putting in equal money. Don't bend the facts.

That is where we are differing. I was saying same take home pay.

NERD FIGHT!!!!

 

[IVE GOTTA PACKAGE 4U]

That is where we are differing. I was saying same take home pay.

Do you see where I am coming from?

 

[Turdferguson]

wrong thread. Lol

Don't you hate when you do that?

 

[IVE GOTTA PACKAGE 4U]

NERD FIGHT!!!!

Shove it!
Sunshine.