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401K Speculation
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<blockquote data-quote="raceanoncr" data-source="post: 661717" data-attributes="member: 6408"><p>No, I DON'T want "free" money! </p><p> </p><p>That "free" money is gonna cost you later. How? Well, say YOU put in 6% yourself. UPS matches that at another 6%. OK. UPS gets to take the tax break for their 6% right now, this year. YOU only get your 6% knocked off your taxable earnings right now, this year. Copy? Easy. You now have 12% in your 401, right? </p><p> </p><p>You keep doing that for years and years and years until you got a sizable chunck in your 401. BUT, you've let them match it every year. </p><p> </p><p>Comes time to start taking it out, YOU are going to have to pay taxes on the 6% YOU put in AND the 6% UPS put in (plus, of course, whatever other earnings it made). Copy? You wanna do that? Pay taxes on something that you didn't even touch or earn? Oh, sure, you and others will say, "Well, I DID earn that match!" Well, think of it that way if you want, I don't. </p><p> </p><p>Something else. I max mine out each year. Right now, I'm taking 18% and that about maxes me out at end of year. What is it now? 16,000? Don't quite know. Will look. I get to zip that complete 16,000 right off the top of my earnings so it ain't taxed. Can you do that if someone is matching your 401? Maybe someone else can answer that. It seems to me that if you're only putting in, say, 6% and the rest is being matched, you can only zip off your 6% off the top of your earnings to be taxed, correct?</p><p> </p><p>Anyway, I want to be in complete control of any or all investments I have. I don't want to be reliant on UPS or any other company to match something, only to take it away and then to tease me by restoring some of it back then possibly taking it away again.</p></blockquote><p></p>
[QUOTE="raceanoncr, post: 661717, member: 6408"] No, I DON'T want "free" money! That "free" money is gonna cost you later. How? Well, say YOU put in 6% yourself. UPS matches that at another 6%. OK. UPS gets to take the tax break for their 6% right now, this year. YOU only get your 6% knocked off your taxable earnings right now, this year. Copy? Easy. You now have 12% in your 401, right? You keep doing that for years and years and years until you got a sizable chunck in your 401. BUT, you've let them match it every year. Comes time to start taking it out, YOU are going to have to pay taxes on the 6% YOU put in AND the 6% UPS put in (plus, of course, whatever other earnings it made). Copy? You wanna do that? Pay taxes on something that you didn't even touch or earn? Oh, sure, you and others will say, "Well, I DID earn that match!" Well, think of it that way if you want, I don't. Something else. I max mine out each year. Right now, I'm taking 18% and that about maxes me out at end of year. What is it now? 16,000? Don't quite know. Will look. I get to zip that complete 16,000 right off the top of my earnings so it ain't taxed. Can you do that if someone is matching your 401? Maybe someone else can answer that. It seems to me that if you're only putting in, say, 6% and the rest is being matched, you can only zip off your 6% off the top of your earnings to be taxed, correct? Anyway, I want to be in complete control of any or all investments I have. I don't want to be reliant on UPS or any other company to match something, only to take it away and then to tease me by restoring some of it back then possibly taking it away again. [/QUOTE]
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