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<blockquote data-quote="Jackburton" data-source="post: 1004019" data-attributes="member: 34538"><p>No you can not deduct 17k if you are placing it in Roth. The whole benifit of a Roth is the tax free growth on earnings and tax free withdrawal since you have so many deductions currently at your disposal. There are even income limits on people who make to much to be able to participate in a Roth IRA who would kill to have a Roth 401k as there are no income limits. </p><p></p><p>I have a close driver friend that is single that gets owned in taxes as he's single. Due to his lack of deductions (all he has is intrest on his home) it makes more sense for him to do traditional pre tax. Me with two kids and a wife I can afford to take the hit now and plan to live it up in retirement with a large income at retirement. If you can take the hit now I can assure you you'll be much happier if you watch your growth over the next 20years grow tax free once you hit your retirement date. I'm on pace to hit 90-95 which will cause my 20% to end around the end of November, at which time I will take the would be contributions to my TDameritrade account to play with.</p><p></p><p>Either way you choose you're still light years ahead of 90% of drivers.</p></blockquote><p></p>
[QUOTE="Jackburton, post: 1004019, member: 34538"] No you can not deduct 17k if you are placing it in Roth. The whole benifit of a Roth is the tax free growth on earnings and tax free withdrawal since you have so many deductions currently at your disposal. There are even income limits on people who make to much to be able to participate in a Roth IRA who would kill to have a Roth 401k as there are no income limits. I have a close driver friend that is single that gets owned in taxes as he's single. Due to his lack of deductions (all he has is intrest on his home) it makes more sense for him to do traditional pre tax. Me with two kids and a wife I can afford to take the hit now and plan to live it up in retirement with a large income at retirement. If you can take the hit now I can assure you you'll be much happier if you watch your growth over the next 20years grow tax free once you hit your retirement date. I'm on pace to hit 90-95 which will cause my 20% to end around the end of November, at which time I will take the would be contributions to my TDameritrade account to play with. Either way you choose you're still light years ahead of 90% of drivers. [/QUOTE]
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