Is your 401K safe from the Democrats?

[beretta304]

I predicted this 30 years ago. Why I always preferred post tax saving.

I wish so many of my predictions did not come true, I am pretty pessimistic...

Obama is in charge. The world will be saved. Amen!

 

[uscitizen]

I predicted this 30 years ago. Why I always preferred post tax saving.

I wish so many of my predictions did not come true, I am pretty pessimistic...

Obama is in charge. The world will be saved. Amen!

To moreso than it would have been saved had Romney won.

I voted Johnson btw.

 

[beretta304]

I predicted this 30 years ago. Why I always preferred post tax saving.

I wish so many of my predictions did not come true, I am pretty pessimistic...

Obama is in charge. The world will be saved. Amen!

To moreso than it would have been saved had Romney won.

I voted Johnson btw.

I wouldn't be so sure of that. But you made the best choice.

 

[Freewill]

A 401k does not save you any money.

Assuming no return on investment. Do you no save money in taxes by having your contributions taken out before taxes?

Plus if you empolyer matches contribution you make almost 6 percent off the top?

Even with the market in the shape it is in my 401 K has been growing. Last I looked it was 11 percent on some funds.

Could you explain your position and why I am wrong in a little bit of detail?

It's the tax treatment of the growth where you are being ripped off. The gains in a 401k are taxed as ordinary income not at the lower capital gains rates.

The employer match is nothing but income as far as the government is concerned and you are not avoiding taxes on your contributions or on the match you are merely deferring taxes until you retire.

The old logic is that you'll be in a lower tax bracket in retirement but that is not necessarily true because the government not you decides the minimum amount you have to withdraw every year.

So again if you can get a match then get it but do not contribute one penny more than you need to max out the employer match then save the rest in an after tax portfolio where you get taxed at a capital gains rate on the growth and you can decide how much to take out every year.

I didn't know about the minimum amount that has to be withdrawn that is interesting. But if I don't use the 401K pre-tax didn't I already pay at the higher tax rate on the same money?

Do you have a link that explains the minimum amount? I need to know fairly soon before I become a taker.

 

[Freewill]

I predicted this 30 years ago. Why I always preferred post tax saving.

I wish so many of my predictions did not come true, I am pretty pessimistic...

Obama is in charge. The world will be saved. Amen!

To moreso than it would have been saved had Romney won.

I voted Johnson btw.

Of course, a man that the Obama administration calls a successful business man is much worse then a man whose whole life is pretty much made up of winning elections. Not sure what you are seeing in the eonomy that makes you think Obama is doing a good job.

 

[Freewill]

Let me get this right, they are not going to "rip off" the 401Ks. They may stop the pre-tax deductions but no money is going to be "ripped off" is that correct?

What this discussion seems to me to be is a discussion on how they don't want us to save money they want us dependent on the government dole.

 

[Jroc]

Let me get this right, they are not going to "rip off" the 401Ks. They may stop the pre-tax deductions but no money is going to be "ripped off" is that correct?

What this discussion seems to me to be is a discussion on how they don't want us to save money they want us dependent on the government dole.

Let’s not forget if the government takes over your retirement when you die your heirs get nothing. Just like Social Security.

 

[Skull Pilot]

Assuming no return on investment. Do you no save money in taxes by having your contributions taken out before taxes?

Plus if you empolyer matches contribution you make almost 6 percent off the top?

Even with the market in the shape it is in my 401 K has been growing. Last I looked it was 11 percent on some funds.

Could you explain your position and why I am wrong in a little bit of detail?

It's the tax treatment of the growth where you are being ripped off. The gains in a 401k are taxed as ordinary income not at the lower capital gains rates.

The employer match is nothing but income as far as the government is concerned and you are not avoiding taxes on your contributions or on the match you are merely deferring taxes until you retire.

The old logic is that you'll be in a lower tax bracket in retirement but that is not necessarily true because the government not you decides the minimum amount you have to withdraw every year.

So again if you can get a match then get it but do not contribute one penny more than you need to max out the employer match then save the rest in an after tax portfolio where you get taxed at a capital gains rate on the growth and you can decide how much to take out every year.

I didn't know about the minimum amount that has to be withdrawn that is interesting. But if I don't use the 401K pre-tax didn't I already pay at the higher tax rate on the same money?

Do you have a link that explains the minimum amount? I need to know fairly soon before I become a taker.

Required Minimum Distributions -- How to Calculate and Take Required Minimum Distributions

 

[bripat9643]

Remember, Republicans wanted to "invest" it in the stock market just before the "big crash". Could you imagine the devastation? Even worse than their OTHER fiascoes.

401K's are already invested in the stock market, numskull.

 

[CrusaderFrank]

Remember, Republicans wanted to "invest" it in the stock market just before the "big crash". Could you imagine the devastation? Even worse than their OTHER fiascoes.

You're making less sense than usual. Tell the Docs to up your dosage from 6% to maybe 10 or 12%

 

[TNHarley]

They have to replace social security ooops I mean federal entitlement checks

 

[PredFan]

Remember, Republicans wanted to "invest" it in the stock market just before the "big crash". Could you imagine the devastation? Even worse than their OTHER fiascoes.

Hey dumbass, wtf do you think the investment companies do with your 401ks and IRAs?

 

[Freewill]

Let me get this right, they are not going to "rip off" the 401Ks. They may stop the pre-tax deductions but no money is going to be "ripped off" is that correct?

What this discussion seems to me to be is a discussion on how they don't want us to save money they want us dependent on the government dole.

Let’s not forget if the government takes over your retirement when you die your heirs get nothing. Just like Social Security.

Hmmm couple that with them control health care and death panels here we come.

 

[Freewill]

It's the tax treatment of the growth where you are being ripped off. The gains in a 401k are taxed as ordinary income not at the lower capital gains rates.

The employer match is nothing but income as far as the government is concerned and you are not avoiding taxes on your contributions or on the match you are merely deferring taxes until you retire.

The old logic is that you'll be in a lower tax bracket in retirement but that is not necessarily true because the government not you decides the minimum amount you have to withdraw every year.

So again if you can get a match then get it but do not contribute one penny more than you need to max out the employer match then save the rest in an after tax portfolio where you get taxed at a capital gains rate on the growth and you can decide how much to take out every year.

I didn't know about the minimum amount that has to be withdrawn that is interesting. But if I don't use the 401K pre-tax didn't I already pay at the higher tax rate on the same money?

Do you have a link that explains the minimum amount? I need to know fairly soon before I become a taker.

Required Minimum Distributions -- How to Calculate and Take Required Minimum Distributions

Thanks for the link and not telling me I should google it for myself.