Okay seriously, Roth or traditional IRA. In my early 20s about to jump to a startup and need to put my 401k somewhere. Yes assuming that I will be in a higher tax bracket when I retire...cont

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Roth.

Low tax bracket now = Roth. Anticipating taxes to increase, either due to more social programs or our debt = Roth

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Roth. No question.

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YOU DO NOT NEED TO PULL YOUR MONEY OUT OF A 401k EVEN IF YOU CHANGE JOBS. The expense ratio is going to be much better in a 401k versus an IRA, which is a retail product.

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There is a personal investments bowl that answers this every which way. Suggest you check it out.

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That is dictated by law— income limit thresholds will automatically make you ineligible for a Roth

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Any one can do a back door Roth IRA, regardless of income. Just requires an extra step and completely legal.

No income limit on Roth 401ks either.

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OP- Given your situation, its likely you should be 100% Roth.

It all boils down to your effective tax rate now vs. in retirement. This is impacted by your 1. Income and 2. How tax laws change between now and your retirement.

On #1 I’m assuming your income will grow and you will save well throughout your lifetime. If so, its highly likely your taxable income in retirement will be higher. Thus pay taxes now at the lower rate and go Roth.

On #2 there are two schools of thought. One is we dont have a crystal ball, dont try to predict tax policy and ignore this altogether. I tend to think taxes may increase due to our national debt and therefore would prefer to pay taxes now (when we are ignoring it) vs 30 years from now.

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Down the road id recommend re-evaluating when you hit new tax brackets. I generally recommend a mixed approach when making 180+ depends on existing savings and years til retirement

But do the tax loopholes for the very wealthy affect IRA withdrawals too?

At what salary is it advisable to switch from pre tax to post tax?

M1 can you elaborate?

As others have stated, given your age and income now, Roth is undoubtedly your best option now.

Following OP. I start my new job at a startup next week lol. Debating the same thing but was leaving toward M1 advice. Maybe S&1 can weigh in on that option for existing savings?

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Hi team ,

I have started working from jul2019 and I have filed my tax return for 2020 and 2021 tax years.


However I note that there was withholding of some amount in 2017-2018 and 2019 tax years ( withholding from comission received from insurance commission from lic and United india)

I have not filed 2017, 2018, 2019 return as my total income was less than threshold

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