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Anyone know the benefit of a roth 401k?


fuggstop

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You have the financial skills of a 5 yr old.

 

Roth IRA contributions are made with after-tax dollars, and are generally tax-free when you receive distributions, so long as you meet the requirements and do not withdraw funds that are earned. If you withdraw funds before 59 1/2 yrs and it includes earned funds then you pay not only income tax on the funds but also a 10% penalty.
 

 

 

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2 minutes ago, Ginguy said:

You have the financial skills of a 5 yr old.

 

Roth IRA contributions are made with after-tax dollars, and are generally tax-free when you receive distributions, so long as you meet the requirements and do not withdraw funds that are earned. If you withdraw funds before 59 1/2 yrs and it includes earned funds then you pay not only income tax on the funds but also a 10% penalty.
 

 

 

not to defend anyone here, but i'm not sure she means a roth ira. a roth 401k is different from a roth ira. i have a roth 401k and a traditional 401k that takes directly from my paycheck before i even get it, i do not have a roth ira.

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1 minute ago, Naraku4656 said:

not to defend anyone here, but i'm not sure she means a roth ira. a roth 401k is different from a roth ira. i have a roth 401k and a traditional 401k that takes directly from my paycheck before i even get it, i do not have a roth ira.

Yah....roth 401k. Thanks.

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3 minutes ago, Naraku4656 said:

not to defend anyone here, but i'm not sure she means a roth ira. a roth 401k is different from a roth ira. i have a roth 401k and a traditional 401k that takes directly from my paycheck before i even get it, i do not have a roth ira.

Roth 401k comes out after taxes on your paycheck. traditional is before taxes.

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10 minutes ago, Naraku4656 said:

not to defend anyone here, but i'm not sure she means a roth ira. a roth 401k is different from a roth ira. i have a roth 401k and a traditional 401k that takes directly from my paycheck before i even get it, i do not have a roth ira.

Ah.

I was unaware that there was a Roth 401k. I simply assumed Fuggs was ignorantly lumping retirement account terms together. Go figure. :|

 

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