Should I set up a traditional or roth 401k?

like
Posting as :
works at
You are currently posting as works at
Highlighted IconHIGHLIGHTED

Not true about tax brackets. Depends more on what you're investing in. Let's say you invest in equities and in the next 30 years those funds appreciate 1,000%. If you had Roth IRA you pay zero taxes on that gain. Normal IRA you're taxed on the entire gain when you withdraw. That's a big difference.

like

It depends on how much those pre tax dollars appreciate before retirement. No one can really calculate this hypothetical number. Roth if your tax rate will be hire later, otherwise leave those untaxed dollars working for you

like
Recent IconRecent

Thanks for the answer. Hope uncle donald will lower the tax rates soon ✌

like

I think that's something we can all agree on. Taxes are too damn high.

like

Op said 401k. The 132k limit is for ROTH IRA's

like

^Yes really

like

Split it 50/50. Tax diversification

like

Roth if under 132k.

like

If it's over 132k you can still get in a Roth..just backdoor it

like

If you invest 1000 pre tax and make 1000% gain then pay 35% tax. You end up with the same amount if you first paid tax on the 1000 and invested 750 post tax and made 1000% gain.

like

Nobody here is in the 35% bracket. Unless you're a partner.

like

Also assuming that you're successful in your career, you're likely to be in a high tax bracket when you retire since you'll be pulling out all this money you've accumulated.

like

I never once mentioned partner pension considering most on here will never see that. And if I say rate do you now feel better. Yes bracket ranges will change and tax rates will change.

The point is it all comes down to the rate you are being taxed at now vs retirement and giving yourself options.

So OP the answer to your question is Both.

like

Jesus Christ ...I used to work for the IRS and you guys are making my brain hurt lol....I feel like I should hit you guys up for some tax planning this year Since it will be the highest income for me this year and will only get higher.

like

How much money do you make?

Good catch

Depends where you estimate your tax bracket once retiring also.

If you remained in the same bracket the net effect is actually identical.

That would be assuming tax rates don't change at all, which is unlikely

Right. It's all about how much tax you are currently paying vs how much you'll be paying at retirement. Most people assume they will rerequire less income and therefore taxed in a lower bracket and rate but if taxes skyrocket or you increase your bracket then it's better to pay those taxes now. For most though a traditional is better due to the lower income needed once retired.

Related Posts

I have a 25K loan from my MBA. I paid off 100k whole, after graduation. 3 years ago, I moved my loan from federal to private ( SOFI) account. I recently lost my job. I have applied for unemployment, as the severance that I received will only cover for 2 months. Together my husband and I used to make less than 250k after tax. Now, with a loss of pay , we are going to make less. Do you think I will be eligible for Loan forgiveness?

like

Any ideas about the type of “healthcare” roles in Amazon, Best Buy and Walmart? FYI - background is strategy consulting in health.

like

Hi Fishes,
Can anyone please help me in calculating in-hand salary?
I have 1.5lac investment under 80C
and 96k for house rent

Post Photo
like

I’m contributing post-tax 401k offered by my employer to take advantage of the mega backdoor Roth. How often do people roll it over to their Roth IRA account? Like every month? I understand that any gains rolled over would be subject to tax but don’t expect it much given the market is down currently.

like

IWD, because a guy on my team said to me "you get paid less because you get free money during your maternity leave" in the team room. And no one disagreed with him. Because I'm the only woman here.

like

Anyone else feel obligated to take family/friend referrals to healthcare providers? My brother is a dentist and, in light of some work I need done, said "hey! Go to so-and-so at such-and-such. He's a friend and really great." And I'm sure he IS really great, but I love my dentist and don't feel a need to switch. But my brother has already told his friend to expect me.

Would you recommend an associate making 90k base in NYC prioritize maxing out their 401k and Roth IRA even if it means they won't save beyond that? Assume debt has been paid off and 3 month emergency fund in savings

like

PE is notorious for being difficult to get into unless you’re coming from IB. However, there are success stories for consultants breaking into PE even without an MBA.

Which got me thinking, how difficult would it be for a healthcare management consultant to land a spot at a healthcare-focused PE firm?

like

Anyone over 70 still teaching? If so, why and how is it going?

likehelpful

Does Deloitte offer any fitness fund reimbursement and if so, how much is it? Can we purchase home office equipment with it? Would I be able to get stuff reimbursed this calendar year (my start date is Nov. 8th)?

likesmart

Are there any executives out there who have recently negotiated with their CEO for an updated compensation package? I know I'm being underpaid as a CFO who has also handled all of the HR responsibilities for the past 3 years. Currently at $130K with $30K bonus at the end of the year. I don't take the insurance through the company either. Currently no 401K match program available.

I’m seeing lots of posts about really bad losses. If you trade you’re going to lose money - hopefully not all the time, but many positions will be mistakes. But you need a process to find ideas and manage positions. Two books you should read are “The New Trading for a Livinng” and “The Laws of Trading.” Both look at psychology, process, and risk in different ways that can help you work out your own process. The next 18 months will be much harder than the last 18 - time to start learning.

likehelpful

I make $140k in New York. Should I invest a Traditional 401K or a Roth 401K or do a split?

like

Client cfo “put some fishnet stockings on the cost model…”

likefunnyhelpful

Would you take an offer for $10k more with a title bump and less benefits? Was approached by BDO, and it looks like I won’t be going up for promo until year end in August at D.

like

Deducting S Corp owner health insurance when they aren't really an employee? Owner doesn't do anything for the business anymore, but still wants the health insurance.

"Health and accident insurance premiums paid on behalf of a greater than 2-percent S corporation shareholder-employee are deductible by the S corporation and reportable as wages on the shareholder-employee’s Form W-2, subject to income tax withholding."

like

Does Intuit offer job openings in the SDET or QA Automation roles?
I heard this will be one of the top paid companies and also maintain a good work life with great benefits

Anyone recently join Guidehouse as an experienced hire Manager? I have an interview coming up and am curious what kind of salary/benefits package i should expect. TIA!

(1) What firm allows mega back door Roth 401k? (2) which firm matches 401k contribution and up to what %?

like

What's your day start time? Let us know if you're in house / agency / HCP or Patient healthcare / onsite freelance / etc

like

More Posts

Hi Fishes,
I am looking for Data Science related jobs, Please comment if you have openings in your organization.

like

Hello, I have received a JD from one of the HR of Deloitte. The designation is Business Technology Analyst. Is this Deloitte India or Deloitte USI? Can anyone help.

Just signed my offer today! I am beyond excited to start! I'll be in the Chicago office 😁

likeuplifting

I just got offered equity for the first time and I definitely don’t fully understand how it works. Anyone care to dumb it down for me?

Hi everyone! I’m switching internally to my company’s LA office (from Boston). I only need to be in the office 1 or 2x per week and am toying around with the idea of living in San Diego and commuting up that one day. It’s likely be a 2.5hr drive or so each way, which seems like a lot. Can anyone speak to whether or not I’d go insane with that setup or if there are ways to make it more tolerable? I just have more family / friends in SD and would prefer to live there if possible :) thank you!!

like

Can anyone recommend a good book/materials to prep for the CIPP/CIPM? 🙏🏽

Anyone know what the current atmosphere is like in McCann New York after they lost one of their biggest clients, U.S. Army? Does losing such a client deteriorate an agency’s culture/career prospects?

like

Doge Baby Doge !!! 😍

like

Whats the best way to find the beta for CAPM? Is daily, weekly, or monthly price data better? How far historic should you go?

like

Guys,
Can anyone tell me about what's the pay structure for C2 level at Capgemini?

like

Buy Alembic Limited
CMP 134
Hold for few days

Is it unethical as realtors working in an office to block chunks of time off for personal reasons? Some of my coworkers stay in their desks for up to 10 hours, but I've taken up the habit of blocking at least 1 hour daily for lunch, breaks, and other issues that may arise. Do you do this as well or do you prefer to work straight through your day?

like

My friend and his wife just had a baby and I’d like to send them a gift—something that is curated and unique like a gift set that may include clothes, toys, and/or books. Any recommendations for curated gift sets for babies?

like

What’s the biggest challenge you’re facing in your career?

like

I was chatting with someone last night about the genius of This is Spinal Tap and Christopher Guest movies in general - someone who has never even heard of him and his movies. Anyone else a fan?

like

Ladies, can I have some recommendation on standing desk? I really appreciate it 😊

like

Is it possible to find engineering side work?
I’m a civil/environmental engineer that works for local government. Is like to work on design projects on the side. I’ve heard the private sector is booming. Lots of companies are offering remote work. Are there any companies hiring part time?

like

Happy World Mental Health Day to everyone out there working another Saturday in 2020.

likefunnyhelpful

Taking book recommendations :) What have you all been reading?

like

Does Intuit offer job openings in the SDET or QA Automation roles?
I heard this will be one of the top paid companies and also maintain a good work life with great benefits

Additional Posts in Accounting

What are some of your favorite questions at the end of the interview for campus hire especially when someone like a director or partner is interviewing?

like

Who wants to get 5 referral bonuses and hire 5 audit members that were promised a bonus on 6/30 and it still hasn’t hit our accounts? 🤣🤣

likefunny

Best cpa prep course/materials?

like

Seriously considering if leaving would be a better career move. Did 5 years and ended up in a federal tax consulting role, which I like, but it doesn't translate well to industry. Thoughts?

like

Educate me on Bitcoin please

like

Has anyone gone CAIA route ?

likehelpful

Name your favorite true story finance movies

like

What are your plans for the Memorial Day long weekend?

like

What do your teams do to keep it light in the audit room so you aren't just sitting in silence all day?

like

Firms should really start lowering the mandatory retirement age in partnership agreements before these old out of touch partners drive the entire industry into the ground. These people legitimately think the high turnover we’re experiencing is caused by remote work and people “not feeling close” rather than insane hours and compensation 🤦🏼‍♀️.

likefunnysmart

Need a good chair for work. Branch Ergonomic chair or Autonomous?

like

Gave my two weeks notice and literally was told straight up to not charge any time on my engagement. I obviously don’t care about utilization but y’all this place is crazy

likefunnyhelpful

Does Citi allow you to work at a second part time job?
Citi

like

Please tell me that somebody out there agrees: the new Google suite rebranding looks all the same and I can’t remember how many times I opened google maps when I wanted mail and opened meets when I wanted calendar. C’mon Google! What the heck!

likefunny

Has anyone transferred their hard drive from their work laptop to a desktop?

like

Let's set some goals together. What do you want to accomplish this week?

uplifting

Is Boston part of our Northeast? Yes, right?

like

What’s your Alvarez & Marsal bonus this year?

like

What are some of the best careers in the financial services industry?

Please explain:
Why: Coolness, WLB, Comp, Relationships, Ease-of-work
Compensation:
Career Progression:
Nature of work:

like

Got offered to go to RSM from a big four with a 40% raise and a promotion. I should make manager this round if I stay so promotion isn’t that big of a deal. Should I take it? I’ll have smaller clients, but think I’ll really shine there too. Less work, more pay... I could always go back to my current firm. Thoughts?

likehelpful

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Send download link to your phone

OR

Scan your QR code to download
Fishbowl app on your mobile

By continuing you agree to Terms of Use and Privacy Policy.

Messaging rates may apply

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal