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To: NohSpinZone

They basically are considering allowing the same amount but everything over $2400 would have to be in a Roth 401k. For some people, like myself, that would be just fine, but 90%+ of people have a lower rate in retirement than their highest marginal rate while they are working. Same reason I recommend a regular IRA vs Roth IRA for most people since you can invest ~45% for the same amount of money with the tax savings (eg: putting in $5,500 into regular IRA/401k will only cost you $3,800 after a 25% fed + 6% state marginal tax savings).


12 posted on 10/20/2017 12:18:09 PM PDT by rb22982
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To: rb22982

“but 90%+ of people have a lower rate in retirement than their highest marginal rate while they are working.”

Really, the most important failure of IRAs... the presumption and preparation is that you will be poorer in the future.

From there, it goes downhill.


14 posted on 10/20/2017 12:29:56 PM PDT by aMorePerfectUnion
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