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New Roth option
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<blockquote data-quote="satellitedriver" data-source="post: 861946" data-attributes="member: 1664"><p><span style="color: #006400"><strong>Brett, this a complicated tax issue</strong></span>.</p><p><span style="color: #006400"><strong>It is a bet-( read as a crystal ball gamble)- on future tax rates and future growth rates.</strong></span></p><p><span style="color: #006400"><strong>The rollover would be taxed at earned income rates, not capital gains.</strong></span></p><p><span style="color: #006400"><strong>Many of us nearing 59 1/2yrs old have well over $250,000 in our 401k and that is the "new" benchmark for being one of the evil rich that needs to pay more in taxes. That 250+ would be taxed as if we earned it in 1 year. Big damn hit.</strong></span></p><p><span style="color: #006400"><strong>I can see a retiree, already in a lower tax bracket, splitting their bet.</strong></span></p><p><span style="color: #006400"><strong>One could move a portion of their 401k and take the hit and leave the rest in a tradition 401k , then dollar cost average the taxes paid on dismemberment against the growth.</strong></span></p><p><span style="color: #006400"><strong>As I stated, this presently is a complicated situation for someone nearing,or in retirement.</strong></span></p><p><span style="color: #006400"><strong>Who the hell knows, with certainty, which direction future taxes and growth will go?</strong></span></p><p><span style="color: #006400"><strong>Not me.</strong></span></p><p><span style="color: #006400"><strong>On the flip side, if one is under 45yrs old, it is a no brainer.</strong></span></p><p><span style="color: #006400"><strong>Flip and take the hit and hope for the best.</strong></span></p><p><span style="color: #006400"><strong>JMHO</strong></span></p><p><span style="color: #006400"><strong></strong></span></p><p><span style="color: #006400"><strong></strong></span></p></blockquote><p></p>
[QUOTE="satellitedriver, post: 861946, member: 1664"] [COLOR=#006400][B]Brett, this a complicated tax issue[/B][/COLOR]. [COLOR=#006400][B]It is a bet-( read as a crystal ball gamble)- on future tax rates and future growth rates.[/B][/COLOR] [COLOR=#006400][B]The rollover would be taxed at earned income rates, not capital gains. Many of us nearing 59 1/2yrs old have well over $250,000 in our 401k and that is the "new" benchmark for being one of the evil rich that needs to pay more in taxes. That 250+ would be taxed as if we earned it in 1 year. Big damn hit. I can see a retiree, already in a lower tax bracket, splitting their bet. One could move a portion of their 401k and take the hit and leave the rest in a tradition 401k , then dollar cost average the taxes paid on dismemberment against the growth. As I stated, this presently is a complicated situation for someone nearing,or in retirement. Who the hell knows, with certainty, which direction future taxes and growth will go? Not me. On the flip side, if one is under 45yrs old, it is a no brainer. Flip and take the hit and hope for the best. JMHO [/B][/COLOR] [/QUOTE]
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