{ "media_type": "text", "post_content": "401k: Pre-tax or Roth? And why? I'm a non-US citizen .", "post_id": "57e38e5777b88d0e0051008a", "reply_count": 26, "vote_count": 2, "bowl_id": "552d1d24dc1c586b09d2d051", "bowl_name": "Consulting" }

401k: Pre-tax or Roth? And why? I'm a non-US citizen .

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401k limit is 18k. That can be put towards a Roth 401k or a traditional 401k or a mixture of both. The combined total cannot exceed 18k in most circumstances The IRA limit is 5500. Again, that can be put towards Roth or traditional or a mixture. There's an AGI limit on Roth (it's around 120k I believe) that makes it not possible to contribute to Roth for some. Also, if you have a company 401k, you lose the tax deduction benefit of a traditional IRA after a certain AGI as well (it's like 60k or something similar)

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You guys are wrong. Read this http://www.nytimes.com/2015/09/23/your-money/401ks-and-similar-plans/irs-ruling-makes-after-tax-contributions-more-attractive.html?smprod=nytcore-iphone&smid=nytcore-iphone-share

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Unless you plan to stay in the country it's probably not worth the time/cost

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$5500 is The cap for a Roth IRA but I've put more than that in my Roth 401K. Don't know what the actual limit is

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I am not sure you should speculate about us tax rule changes. My current (I'm not in Deloitte any more) employer allows 18k pre and 20k post in the 401k

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D2-That's wrong. It's an IRS limit of 18k this year and 2017 combined.

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It's 53k. But it needs to be enabled by an employer.

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It's really employers choosing to do that my employer has a very generous match therefore the participation rate is high and they can do it. Most employers have lower participation rates which preclude higher investments.

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I would research back door 401k. Might be possible to Roth IRA through ira but that is painful and capped at lower levels. The Roth IRA cap is independent of the 401k cap though.

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Ok S1, read this - http://www.madfientist.com/after-tax-contributions/ you can do it

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Roth because I firmly believe taxes will be raised substantially in the coming years due to our looming debt crisis

Both. Good to have a mix. In retirement, there is a certain point when you have to withdraw a minimum amount. The Roth gives you some tax protection later.

You're only eligible for Roth if you make under a certain threshold and the annual maximum you can invest is $5500 per year. I'm sure others can further explain and add in the missing details. Pre tax limit is $18,000 (I believe) for 2016.

There's the same cap for Roth 401k. If you do both, combined can't go over $18k.

Also, no salary threshold for Roth 401k

Is Roth 401k the same as Post Tax 401k? I have 3 options to invest in: Pre Tax 401k, Post Tax 401k, and I have a Roth IRA account at Edward Jones.

Not sure if all of that is entirely true? However, I may be getting lost in semantics. Pre tax 401k contribution maximum is 18k. You can then continue to contribute towards a post tax 401k contribution and the limit there is roughly 52k I think. Can anyone confirm this is true?

That is not true, S&1. You can only contribute 18k per year total to your 401k account through your job, and the maximum applies whether you choose post tax, pre tax, or a mix of both.

D2 - 401k contribution limits are set by the government and are the same for all companies that offer a retirement plan. You can only contribute 18k annually (increases every couple years or so), whether pretax or post tax. You may be thinking about their matching contribution? Or something else? But you cannot contribute more than 18k without your plan breaking the law.

I mean 18k for 2016. And another 18k for 2017. Traditional/pretax and Roth/post tax combined.

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