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Old 06-19-2022, 11:13 AM
 
1,137 posts, read 1,102,231 times
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Quote:
Originally Posted by SuiteLiving View Post
Less expensive to do but there still isn’t a “deduction”
Think about it…

Let’s say you deferred $20k of your income to 401k…

It’s value declined to $15k and you roll it to a Roth401k

You got a $20k deduction on your income… but only pay tax on $15k to roll it over. Hopefully it bounces back to $20k (and beyond) which seems kinda beneficial in some way
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Old 06-19-2022, 11:22 AM
 
2,755 posts, read 1,795,749 times
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Quote:
Originally Posted by Marcl View Post
Think about it…

Let’s say you deferred $20k of your income to 401k…

It’s value declined to $15k and you roll it to a Roth401k

You got a $20k deduction on your income… but only pay tax on $15k to roll it over. Hopefully it bounces back to $20k (and beyond) which seems kinda beneficial in some way
I understand the math but OP was looking for a way to deduct $5k (in your example) currently. That's what can't happen.
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Old 06-19-2022, 11:25 AM
 
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Quote:
Originally Posted by ChessieMom View Post
Certainly not. You need more understanding of what a tax deferred savings account is.
so tell me what I can do. it is hurting me to see my 401K investment getting wiped out this year. How can I stop the bleeding?
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Old 06-19-2022, 11:36 AM
 
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Quote:
Originally Posted by juggie View Post
so tell me what I can do. it is hurting me to see my 401K investment getting wiped out this year. How can I stop the bleeding?
sell everything and put it all into treasury bonds and plan on saving a lot more or retiring with a lot less.
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Old 06-19-2022, 11:44 AM
 
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Quote:
Originally Posted by SuiteLiving View Post
sell everything and put it all into treasury bonds and plan on saving a lot more or retiring with a lot less.
why is it happening with my current employment 401K only? my earlier employment 401k are fairly relatively stable even in 2022. I haven't moved those into my current 401K for obvious reasons. I tried moving into a less risky fund within my current 401K plan, but still I am making a significant loss this year with my 401K investments.
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Old 06-19-2022, 11:44 AM
 
13,194 posts, read 28,352,969 times
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Quote:
Originally Posted by juggie View Post
so tell me what I can do. it is hurting me to see my 401K investment getting wiped out this year. How can I stop the bleeding?
You must be young. You just ride it out at this point. Your 401(k) is money for later, not today. The best strategy is to stop looking at your balance regularly and keep making your regular contributions, especially if your employer matches.

I promise it will be be higher again in the future, whether that’s 2 years from now or 5 or 20. My balance got very low in 2008-2009 as I was in my 20’s and not invested very long before the Great Recession. Now even with the current bear market, my account balance is still well over $1M.

Just ride it out.
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Old 06-19-2022, 11:54 AM
 
13,194 posts, read 28,352,969 times
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Quote:
Originally Posted by juggie View Post
why is it happening with my current employment 401K only? my earlier employment 401k are fairly relatively stable even in 2022. I haven't moved those into my current 401K for obvious reasons. I tried moving into a less risky fund within my current 401K plan, but still I am making a significant loss this year with my 401K investments.
Well the S&P is down 22% YTD so if your former account is closer to flat, you are either invested mostly in cash / bonds or luckily in one few industries that’s up like oil.

Is your current 401k down more than the S&P?
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Old 06-19-2022, 12:40 PM
 
13,142 posts, read 21,082,041 times
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Quote:
Originally Posted by juggie View Post
my earlier employment 401k are fairly relatively stable even in 2022.
During the high times, was the former employer's 401k also a fairly flat performer?
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Old 06-19-2022, 12:51 PM
 
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Originally Posted by TurtleCreek80 View Post
Well the S&P is down 22% YTD so if your former account is closer to flat, you are either invested mostly in cash / bonds or luckily in one few industries that’s up like oil.

Is your current 401k down more than the S&P?
I started from March, so 3 months till date.

It has tanked 2k+ in investment of $13.5k, sofar. So 15% so far despite me trying to move them to low returns stable funds with current 401K.

How can I force my plan provider to move my funds into a stable portfolio? so that I see stability in my 401K? Seems they are just burning my money without any care in the world. TransAmerica is my current 401K provider.

S&P then 4200
S&P now 3674
(12% decline)

Btw, I am not young. I am 47 years old.
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Old 06-19-2022, 12:59 PM
 
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Quote:
Originally Posted by Rabrrita View Post
During the high times, was the former employer's 401k also a fairly flat performer?
I didn't follow as much
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