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401 k vs. U.P.S. stock
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<blockquote data-quote="1989" data-source="post: 663061" data-attributes="member: 10280"><p>High income earners can't have a roth. </p><p></p><p>If I take money taxed at 15%. $5000 a year for 30 years @ 4% I would have $308000. And would have paid $22500 in taxes over those 30 years. </p><p>$308000 minus total investment $172500 (150000 + 22500) = $135500 of earnings. I would be free to do anything with that money.</p><p></p><p>If I put that same $5000 a year in a 401K @ 4% I would have $308000 and will have to pay $46200 in taxes at a 15% tax rate. </p><p>$308000 minus total investment $196200 (150000 + 46200) = $111800 of earnings. I would have to withdrawal over several years or get a larger tax bill. Plus I forgot the fees you are paying.</p><p></p><p>Is my math wrong? </p><p></p><p>Roth = more earnings $135500 less restrictions</p><p>401K = less earnings $111800 (minus fees) more restrictions</p></blockquote><p></p>
[QUOTE="1989, post: 663061, member: 10280"] High income earners can't have a roth. If I take money taxed at 15%. $5000 a year for 30 years @ 4% I would have $308000. And would have paid $22500 in taxes over those 30 years. $308000 minus total investment $172500 (150000 + 22500) = $135500 of earnings. I would be free to do anything with that money. If I put that same $5000 a year in a 401K @ 4% I would have $308000 and will have to pay $46200 in taxes at a 15% tax rate. $308000 minus total investment $196200 (150000 + 46200) = $111800 of earnings. I would have to withdrawal over several years or get a larger tax bill. Plus I forgot the fees you are paying. Is my math wrong? Roth = more earnings $135500 less restrictions 401K = less earnings $111800 (minus fees) more restrictions [/QUOTE]
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401 k vs. U.P.S. stock
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