[robroys woman]

Meh. 401k’s are a ripoff anyway.

Go Roth IRA.

[Cementjungle]

Meh. 401k’s are a ripoff anyway.

Why do you say that?

[House Atreides]

Ahh... there are ROTH 401Ks also.

[C19fan]

Understand but with a wife and two kids to educate, house and feed need all the after-tax income I can get.

[Grampa Dave]

BS!

Both are good plans if you use the proper company for the plan. If you don’t, you end up buying their crap that they don’t sell to prime customers.

My wife and I were never able to utilize a Roth. The nearest we came was a few years she had a Sep/Ira until I embarrassed the doctor group she worked for into going to 401k’s.

Our CPA for decades was a friend, she had a Roth as she was on her own. She said that with excellent corporate matching funds, the 401k’s were good, if they allowed us to basically manage the funds. I went to Fido, and eventually the group, my wife worked for set up FIDO 401k’s as an alternative.

[Jonny7797]

Grade A baloney right there.

[snoringbear]

Don’t know why you say 401K’s are a rip-off as they both have their place.

Seems to me that if one is employed by a company that offers matching funds that a 401k is the way to go. In fact, I would say it should be the first option, max out the 401K before turning to other investments. The Roth is a good option for those who are self employed, retired or work for a company that doesn’t offer a 401K, usually a small company. Here’s a pretty good site that explains each fairly well. Below is a fairly good explanation of each I think.

http://www.investopedia.com/ask/answers/100314/whats-difference-between-401k-and-roth-ira.asp

[Jarhead9297]

I’ve made a fortune off my 401k you kidding!? Especially with company match too. Maybe you are thinking of something vastly different

[Codeflier]

I don’t trust the future tax treatment of Roth’s with our government today.

[Mariner]

“Meh. 401k’s are a ripoff anyway.”

That’s crazy talk right there.

Almost all 401ks have some degree of employer match which is a net gain to the saver above and beyond the tax break.

Anyone who has access to one with ANY match is a fool not to max it first before considering any other retirement plan.

[MRadtke]

Not knowing what the tax situation will be years from now, I diversified into both Roth accounts and pre-tax accounts. My situation is I'm supporting a family of five so my tax liability isn't nearly as high as when I was single.

[grania]

Go Roth IRA

I agree with you. I'd be amazed if the feds don't mess with it.

[sjm_888]

Crazy talk.

[Roman_War_Criminal]

Then you’ve been doing it all wrong or don’t know what you’re doing.

My 401k have gone up over 120% in the past three years.

[NohSpinZone]

What makes you think that the scum in government down the line won’t rescind the tax-free growth provisions in Roth? We all know they’re not above anything, these vampires.

[freedumb2003]

>>Meh. 401k’s are a ripoff anyway.<<

Hey, back before I went independent I was more than happy to take my employer match.

If someone wants to just give me money, my answer is “thank you.”

My 401(k) has done pretty well for itself. It is self-sustaining since I went to an SEP.

Roth is good if you think you taxes when you withdraw will be more than your taxes now. I am the opposite of that — it will be much MUCH cheaper for me to pay the taxes in the future.

Also the Roth cap is so small you might as well put your money in your mattress. $6500 a year? After 20 years you will have maybe $150K. Enough for a guppy to retire.

Different strategies for different phases in life and wealth.

Note: If they cap 401K to $2,400 they might as well just end it.

[Flying Circus]

I put in just enough to get the full matching amount offered by my employer, otherwise I would be leaving money on the table. Roth IRAs seem like as much of a scam to me. The idea is I lock away taxed money on the promise that gains will not be taxed when I take it out. I don't trust their promises.

[tbw2]

If they reduce 401K contributions, other types of retirement contributions are likewise going to be reduced.