Do you have any sagely advise for the working populace (approximate 50 percent) that doesn't have access to a 401(k), much less a contributing 401(k)?
It Could Always Be Worse
- Thread starter Oldfart
- Start date
Do you have any sagely advise for the working populace (approximate 50 percent) that doesn't have access to a 401(k), much less a contributing 401(k)?
UpstateNYUPSer(Ret)
Well-Known Member
Traditional or Roth IRA.
The contribution limits are substantially different - not to mention post-tax programs generally favor those that will be in a higher tax bracket in the future (not the case with people working in gigs without benefits).
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UpstateNYUPSer(Ret)
Well-Known Member
If your on the wrong side of the median household income, investing $6500(?) a year isn't going to save your retirement.
Here you are lecturing us on pensions but yet you don't know that they are taxable or where they go on your return. So let me help you IRA distributions goes on form 1040 line 15a and gross pension receipts on line 16a.
For 2016 an individual age 50 and over over can add an additional $5500 to their 401K contribution for a maximum total of $22,500, The maximum contribution to IRA is $5500.....$6500 if age 50 and over.
Oldfart
Well-Known Member
WHILE you are working? The portable contributions do not show on your tax returns WHILE it is being deposited into your account. They do when you start withdrawing them. And you think you know something. What a tool. People kept saying your company deposits into your pension are considered COMPENSATION. If they are considered COMPENSATION, why are those deposits NOT on your W2?
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It is reported on form 1099 MISC,
Oldfart
Well-Known Member
$6500 a year for 30 years at 5% will yield close to 450K. Not a bad start.
Oldfart
Well-Known Member
You need to consult a tax man. You actually think the 8% Fedex contributes to my portable every year goes on my tax return? I guess you THINK my 401K contributions go on there as well. Maybe you need to read a book on tax preparation.
You show your ignorance about business more every post
When you withdraw from it you will receive a 1099 stating what the amount you withdrew. That amount including what portion is taxable which will include what X contributed is reported to the IRS . If you want to you can call what X contributed 'Free" money but it's NOT TAX FREE only tax deferred meaning taxed at the time of withdrawal.
UpstateNYUPSer(Ret)
Well-Known Member
...hopefully at a lower rate...
Oldfart
Well-Known Member
Is it taxed at the time it was deposited? Learn to read fella. NOBODY mentioned the taxes at the time of withdrawal. Once again, I will go slow for you since you are a little slow. Someone said that your portable is considered compensation WHILE you are working and having it deposited into your pension account. I said it was a benefit NOT compensation because it does not go on your tax return. You THINK it is taxable income at the time it is deposited while you are working. Like I said, you continue to show your ignorance.
It will be fine
Well-Known Member
You're making a bad argument based on semantics. It is compensation for work performed. When it is taxed has no bearing on that fact. There's no such thing as free money.
UpstateNYUPSer(Ret)
Well-Known Member
A 401k match is free money.
Oldfart
Well-Known Member
I will pay taxes on money someone GAVE me as a benefit all day long. I don't like paying taxes but if I am paying taxes, that means I am making money. UNLIKE the liberal Democrats that get the "earned income credit?
Oldfart
Well-Known Member
Please read some business publications. You might learn something. It is a benefit, not compensation. It does not show on a W2 or any yearly tax forms.
UpstateNYUPSer(Ret)
Well-Known Member
Some may argue that the standard deduction is a form of earned income credit for those who do not have enough deductions to itemize.
MAKAVELI
Well-Known Member
So we don't have to work at FedEx to get a match on our 401k? Thx I think I'll quit Monday.
