Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
For example, the first $1000 I put into my 401k deferred say...40 years at 7% gains is...about 15k.
Assuming 30% taxes that nets to about 10.5k
Alternatively if I paid tax up front I'd have $700 (which would at least be partially taxed at least on dividends and not gains until later) so I'll assume a 6% net of tax return and then at the end take off 15% as a swag for capital gains tax.
Sooo, 700 x 1.06^40 x (1-.15) = $6100
Now we can poke holes in some of the assumptions but being able to hold uncle sams $$$ for long periods of time and earn income off it has a profound impact even on a net of tax basis.
Also, sure we are talking about $$$ put in that has 40 years to earn interest on and the 401k is a blend of years but it's generally safe to say that on average you're coming out SIGNIFICANTLY ahead by shoveling what you can into your 401k. (Unless they rachet up taxes bigly near retirement age lol)
Here's what I posted on the very same topic one week ago (complete with the edit):But this article DOES seem to equate it to turning it into a Roth 401K, which I had originally thought they were talking about (but which the article from last week did not mention).
Frankly, the more I can get into Roth 401K, Roth IRA, and Non-Retirement savings, the better. It feels a lot better having after-tax savings sitting there (of course I pay cap gains on profits at sale time in the Non-Retirement registrations).
Profit sharing and company match would still be subject to withdrawal tax as income, however.
Confusing. Your investments grow tax free in Roth. If it were a taxable account you will be taxed on dividends and cap. gains.
When you pull out of Roth you are pulling out these earnings, and maybe part of the capital, tax free. One way or other you are taxed.
Yes, PBS and planned parenthood are just really putting so much pressure on that budget, but we need more conventional military to fight people who use pressure cooker roadside bombs. We need more battleships too.
This is up there with the "we can save money on health insurance with tort reform and selling across state lines!!" mantra regurgitated by dimwitted Sean Hannity fans.
the defense budget is smaller than its been in many years
...our military spending is right in line with everyone else
our CURRENT defense budget is only 3.3% of our GNP....china spends 4.1% of its gdp on military.......right in comparison with the rest of the world at 2-6%
france's defense budget is 55 billion euro...while their gdp is about 1.4 trillion (3.9%).....our spending is less than 600 billion with a gdp of 18+ trillion(3.3%).....so france actually spends MORE as a percentage of their gdp
defense spending as a % of GDP puts us at #29 meaning 28 other countries spend MORE than us on their military as a percent of their gdp
we spend LESS now than we did 30 years ago(adjusted for inflation) as a percent of our GDP
the trump plan cuts taxes and streamlines the system across the board
some rich will make out better....some rich will pay more
some middleclass will make out better....some will pay more
the poor makes out better period
no system is perfect, and will make everyone happy...but the current system needs to be streamlined its too complex
Trumps plan is a massive tax cut for those at the very top.
The middle class who itemize will be hurt by the plan. The removal of the personal exemption takes out much of the benefit for almost doubling the standard deduction to the middle class with no dependents, and results in a higher taxable income to those with dependents, same for the poor with a higher bottom bracket to boot.
Trumps plan is a massive tax cut for those at the very top.
The middle class who itemize will be hurt by the plan. The removal of the personal exemption takes out much of the benefit for almost doubling the standard deduction to the middle class with no dependents, and results in a higher taxable income to those with dependents, same for the poor with a higher bottom bracket to boot.
so instead of agreeing that it is A streamlining plan that helps most
all you want to do is bash it.
90% of middleclass will be helped out by the plan...the 10% that wont have extremely high itemizations, and large families
the fact is again:
some rich will make out better....some rich will pay more
most middleclass will make out better....some will pay more
nearly all of the poor will make out better... period
so instead of agreeing that it is A streamlining plan that helps most
all you want to do is bash it.
90% of middleclass will be helped out by the plan...the 10% that wont have extremely high itemizations, and large families
the fact is again:
some rich will make out better....some rich will pay more
most middleclass will make out better....some will pay more
nearly all of the poor will make out better... period
If you have ONE dependent your taxable income will be higher under Trump's plan even if you currently take the standard deduction.
As Benjamin Franklin said, if you don't want to pay your membership fee, go live among the savages. Buh-bye.
I do now, savages loot and steal.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
