| Author | Message | ||
     Manthri Junior Artist Username: Manthri Post Number: 550 Registered: 02-2013 Posted From: 50.155.250.156 Rating: N/A |
ROTH - you will contribute after tax. You can always withdraw your contribution anytime. Gains you need to pay tax before 60, after that its free. ROTH is better | ||
| Rgb Comedian Username: Rgb Post Number: 1133 Registered: 06-2014 Posted From: 100.35.71.182 Rating: N/A |
Traditional IRa and 401K - Contribution before tax. You will pay taxes on withdrawal of both initial deposit and earnings on it Roth IRA - Contribution after tax. No taxes on withdrawal (you have already payed taxes on deposited money but the growth is not taxable) If your taxes are high now, 401K and Traditional IRA will reduce your taxable income. If you dont expect much other income during retirement this is great. The concept is you will be in a lower tax bracket at retirement If you are starting young, having a Roth IRA and investing in Stocks is great. According to calculations the increase is much more than your deposit, so all that is tax free. If you will have other income during retirement this is a great plan. Also you dont need to withdraw at 70.5 like the others. So you can have this grow tax free for your children | ||
| Andhrawala Legend Username: Andhrawala Post Number: 39128 Registered: 03-2008 Posted From: 173.95.190.5 Rating: N/A |
Ira for people who dont have 401k. Both contribution and income are non taxable Roth ira contribution is taxable but income is not taxable No Signature | ||
| Catalyst Side Hero Username: Catalyst Post Number: 3969 Registered: 07-2009 Posted From: 73.11.62.29 Rating: N/A |
A simple example: If you stay in the place until your retirement which has no state taxes or low tax rate then Traditional is better. If you move to new place where the tax rate is high then you will end up paying more taxes while withdrawing the amount after the age of 59.5 yrs. ROTH- you contribute to the plan after paying taxes. So, if you stay in low paying taxes state this would be good for witjdrawal. Remember, for both TRAD n ROTH if you withdraw the funds before 59.5 yrs you will end up paying 10% penalty. "I can forgive, but I cannot forget, is only another way of saying, I will not forgive". DAMN | ||
| Happydays Junior Artist Username: Happydays Post Number: 256 Registered: 02-2015 Posted From: 66.177.91.20 Rating: N/A |
Edhi better?. |
