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X @Investopedia
Investopedia· 2025-10-06 21:00
Discover what a Roth IRA is and how it works, including income-based eligibility and tax-free growth, and why it may be ideal if your tax rate is higher in retirement. https://t.co/gEw5YfLUuB ...
Ask an Advisor: We're in Our Mid-50s With $2 Million in 401(k)s. Should We Switch to Roth Contributions?
Yahoo Finance· 2025-09-08 20:00
Core Insights - The decision to switch from traditional 401(k) contributions to Roth contributions depends on individual circumstances, including tax implications and future tax rates [1][2][5] - Roth 401(k) plans are increasingly offered by employers, combining features of traditional 401(k)s and Roth IRAs, but traditional 401(k)s remain more popular due to immediate tax benefits [2][4] - Contributions to a Roth 401(k) are made with after-tax dollars, leading to tax-free growth and withdrawals, which can be advantageous for long-term tax planning [3][4] Group 1 - Roth 401(k) contributions do not reduce current tax bills, as they are made with after-tax income [3] - A hybrid approach of contributing to both traditional and Roth 401(k)s can provide greater tax diversity and flexibility in future tax planning [4] - The primary disadvantage of Roth 401(k)s is the immediate higher tax bill, which may deter some individuals from switching [5]
X @Investopedia
Investopedia· 2025-06-22 02:00
If you can save some of your graduation cash, a Roth IRA offers a unique chance to grow your money 100% tax-free for years—but it’s an opportunity with a limited window. https://t.co/7KQEvqSkYF ...