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Make sure you do after tax. Some guys preach to do pre tax contributions cause you won’t feel it in your check. But when you file your taxes at the end of the year. You have to pay state tax in one lump sum for those contributions. You pay federal when you withdraw it. It’s the States way of making sure they get there money. Cause theoretically you can live in Florida when you retire. A no tax state. New York isn’t gonna let you skate tax free on money you earned here. No way to cheat Uncle Sam. So in my opinion. Pay your taxes now. Or forfeit your return every year
Make sure you do after tax. Some guys preach to do pre tax contributions cause you won’t feel it in your check. But when you file your taxes at the end of the year. You have to pay state tax in one lump sum for those contributions. You pay federal when you withdraw it. It’s the States way of making sure they get there money. Cause theoretically you can live in Florida when you retire. A no tax state. New York isn’t gonna let you skate tax free on money you earned here. No way to cheat Uncle Sam. So in my opinion. Pay your taxes now. Or forfeit your return every year
Ah so basically it’s the same ****. I agree might as well let your money pile up tax free over the years if the state tax is going to stay the same. So I’m guessing you would go with the IRA 401k first right since that’s after tax with a higher cap? I don’t even know if they match at all for the 401k
Yes I do Roth all the way. I like getting a tax return. I did pre tax my first year. And got rammed when I did my return and couldn’t figure out why. Then my accountant broke it down for me
You realize that by getting a tax return you're overpaying throughout the year and giving the govt an interest free loan, right? The goal is to not get a tax return. Brings me back to guys complaining about trumps tax cuts negatively affecting their return. Lol! You pay less your returns gonna be smaller. One would think common sense...Roth is for low earners and high earners. Traditional all the way for the middle class. The Roth vs traditional debate comes down to this: will taxes be higher or lower when you start pulling money out? The answer to that question is anybody's guess.
You realize that by getting a tax return you're overpaying throughout the year and giving the govt an interest free loan, right? The goal is to not get a tax return. Brings me back to guys complaining about trumps tax cuts negatively affecting their return. Lol! You pay less your returns gonna be smaller. One would think common sense...Roth is for low earners and high earners. Traditional all the way for the middle class. The Roth vs traditional debate comes down to this: will taxes be higher or lower when you start pulling money out? The answer to that question is anybody's guess.
But if the 401k has a match then it could be worth it because the amount matched can outweigh the difference. I still don't know if they match though
[quote=manimgarbage;55640486]You realize that by getting a tax return you're overpaying throughout the year and giving the govt an interest free loan, right? The goal is to not get a tax return. Brings me back to guys complaining about trumps tax cuts negatively affecting their return. Lol! You pay less your returns gonna be smaller. One would think common sense...Roth is for low earners and high earners. Traditional all the way for the middle class. The Roth vs traditional debate comes down to this: will taxes be higher or lower when you start pulling money out? The answer to that question is anybody's
I’m married with 2 kids own a house and have always claimed single 0. And when I did pre tax I had to pay when I did my return. So maybe I should claim married 2. Do pre tax and get hit with a $10,00 bill when I file. Great idea.
I did both. 5% in 401 and 5% in 457. Reason being is that I had a nice 401k from my previous job and you cannot rollover a 401k into a 457 , so I rolled it over to my sanitation 401. Best of both worlds ,plus it diversifies your money .
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