What’s better between a 401k and a Roth IRA?

[Basedbaby]

Title

[JayDigital]

Depends. But for the most part, if you meant Traditional 401k, Roth IRA is better.

[Ironmanlet]

Both are just another tool for rich people to make money off your resources and to get taxed and fined the **** out of.

They are not your imaginary numbers on a computer screen. It is just your turn to use them.



IRA obviously.

It isn’t compounding but 20% is 20%

[JayDigital]

Both are just another tool for rich people to make money off your resources and to get taxed and fined the **** out of.

They are not your imaginary numbers on a computer screen. It is just your turn to use them.

[propreffered7]

If there were an employer matched 401k. Then prob that

Higher contribution limit

I dont even know do you have to pay taxes yearly on 401k?

That would take some out of it

Roth ira you can pay taxes later but only has 7,000 contribution limit

[BalognaNbeans]

Get max employer match in 401k then Roth

[Ironmanlet]

You are right. I better get back on script.


Yes emperor. Your new clothes are amazing

[Azrairc]

roth you pay no taxes

IRA trad/401k is taxed as income as normal, you take out 100k government takes 40k of that. Still worth it to take the free money from employer

[baroni01]

Get max employer match in 401k then Roth

This

[ShakeBrah]

Get max employer match in 401k then Roth

Close..
Max employer match 401k
Max Roth IRA
Max Traditional IRA
Rest in individual investment account

[FatalTragedy12]

None, have all savings in crypto.

[Onlinedatingcel]

Close..
Max employer match 401k
Max Roth IRA
Max Traditional IRA
Rest in individual investment account

You can't max both roth and traditional. It's max 6.5k between the two, and all in roth is generally best.

But you can put extra in 401k which would have the same effect.

[Ironmanlet]

roth you pay no taxes

IRA trad/401k is taxed as income as normal, you take out 100k government takes 40k of that. Still worth it to take the free money from employer

You always pay taxes lol.

Every single dollar is taxed way more than it’s own value again and again.


Remember, the rules are made up and specifically benefit not you.

[Azrairc]

You always pay taxes lol.

Every single dollar is taxed way more than it’s own value again and again.


Remember, the rules are made up and specifically benefit not you.

dingers need to eat and mexicans need healthcare and ukraine needs aide brah

[Vanderlust]

Title

401 kilometers is way too much

[Basedbaby]

If there were an employer matched 401k. Then prob that

Higher contribution limit

I dont even know do you have to pay taxes yearly on 401k?

That would take some out of it

Roth ira you can pay taxes later but only has 7,000 contribution limit

My employer has a 401k option but I was thinking of asking the hr people if they could give me a Roth IRA instead so I can pay less income taxes in the moment.

[Basedbaby]

Close..
Max employer match 401k
Max Roth IRA
Max Traditional IRA
Rest in individual investment account

Bro I’m not trying to have 3 different investment plans I don’t have much faith in the future of this country I’m only considering doing the 401k because my employer matches it

[Azrairc]

My employer has a 401k option but I was thinking of asking the hr people if they could give me a Roth IRA instead so I can pay less income taxes in the moment.

that's not how it works

[Basedbaby]

that's not how it works

So to milk as much money out of my employer as possible just max out 401k?

[Plateauplower]

Get max employer match in 401k then Roth

^ this.
Some plans you can do much more into Roth option. I have a pension plan but also a 457 (deferred comp) plan with a Roth option. This year I’ll do 23k into 457Roth, 7k into my Roth, 7k into wife’s spousal Roth, and maybe some ibonds if the fixed rate goes up more. Roth has no minimum distributions and is better for creating generational wealth for heirs.

[Azrairc]

So to milk as much money out of my employer as possible just max out 401k?

Just do the match, the income you pay in will be deducted from your income.

You are thinking of a traditional roth, employer not required. If you open that roth you can put in more money to deduct your taxable income.

Roth IRA is to put in income after it's taxed, the best thing about that is it's not taxed when you use it for retirement, nor are all the gains. The 401k and Traditional IRA will be taxed as if was any other income. This is why Roth is limited to 7k

also keep in mind, if you needed 1 million to retire today, at normal inflation rates you will need much more due to inflation. By the time we retire you will need much more.

$1,000,000 now equals $2,427,262.47 after 30 years in purchasing power with an average inflation rate of 3%.

https://www.calculator.net/inflation...culate#forward

you need to max out all 3 the best you can and as early as possible

[crupiea]

years ago when I was married we fell on a biot of financial issues. We needed some money quickly to get some big bill knocked out.

My wife had an ira from her work so she asked about drawing out some of that money. Took weeks to get it and it was a major pain in the ass plus had to pay it all back.

Ever since then i have sworn off ever contributing to one. I put my money into savings and it just sits there, if an emergency happens, its 100% available to me, just need to drive to the bank and get it. Hell, dont even need to go to the bank nowadays.

I dont get any matching contributions obviously but I always have access plus there is never a concern of it losing any money.

When you invest, you are trusting someone you dont even know with your hard earned money so think long and hard if you can trust them. At work you dont even know where your money goes, just some name they tell you and you get some printout saying how much is supposed to be there.

[Leonydus]

in 30 years that monopoly money wont even buy you a muthafukkin hamburger

[scrapbrah]

401k from an employer is pre tax. Meaning it's deducted prior to the taxes taken out from your paycheck.

Roth is something you can setup with your own money after tax and the principle balance can always be drawn upon without penalty.

In most cases it's easier to contribute to a 401k as you feel it less and shouldn't ever have to draw from it. If you do, early withdrawal fees + taxes almost defeat the purpose in the early years. Still, it's a good way to dip your feet into investing as it's managed by non-miscers.

[LtGoose]

If you don't have both you're doing it wrong srs

Diversify that portfolio cuh

[cavillac]

The good thing of the Roth 401K is that you can contribute more (23K this year) and the obvious match you mentioned but that will not be roth unless your employer incorporated the ability for you to pay the tax on the match they give so it will also be roth instead of traditional.

The bad thing on the 401K plan is you're limited on what you can invest in. Typically you get to choose from a number of mutual funds that can come with expensive management fees.

The good thing of the Roth IRA is you can invest in whatever you want at your discretion, the bad is you can only contribute like 6,500 or 7,000 this year.