Current Events > NeonOctopus want to remind you to contribute to your ROTH IRA as much as you can

(+) Yeah! (+)

CE is still on his mind after all dese years tbh

https://www.youtube.com/watch?v=kId0WiD69JM

Trad 401k > Roth imo.

If you withdraw from long term capital gains under a certain yearly income threshhold (around $96k for married filing jointly in 2025) you don't pay taxes on sale anyway.

Source:

2024 and 2025 Capital Gains Tax Rates and Rules - NerdWallet https://share.google/bPUGDfCh2gplnZdQh

no idea what a roth is

and can we please stop talking about this banned poster

Pretty sure that's just an American thing, so as much as I can is not at all, so I am successfully doing so by doing nothing.

Apparently if I do this every year by the time I retire I will be a millionaire

I don't know how a ROTH IRA works. I have an employer provided 401k I put 13% into. They give you 33% of what you put in so I get like 4.3% extra paycheck from employer

I dont know what dat means ):

Doe posted...

I don't know how a ROTH IRA works. I have an employer provided 401k I put 13% into. They give you 33% of what you put in so I get like 4.3% extra paycheck from employer

Trad 401K is untaxed when it goes into the account (but taxed when you sell BUT only over a certain yearly income threshhold).

Example: you earn $100,000 a year and contribute $10,000 to your Trad 401K. That $10,000 is untaxed the year you contribute. When you're in your 60s or 70s and sell from that Trad 401k, that money is taxed at long term capital gains rates. The trick is that for the majority of people, they have much less income after they retire than when they're working, so their taxes are much lower anyway. If you sell incrementally under a certain income you can maintain 0% tax rates.

Roth is untaxed when you sell but taxed at your income rate when you buy. So if you're under 50, earning $100,000 a year, and contribute the max $7,000 to your Roth IRA, that $7,000 is taxed as part of your $100,000 income. But the upside is it grows tax free and you pay zero taxes on it when you sell.

Nope; traditional IRA.

Maxed it the first week of the year.

Wait... You and Neon keep in touch?

NoxObscuras posted...

Wait... You and Neon keep in touch?

Thats half his gimmick

I opened it this year and maxed out last year and this year.

I do. Its one part of my retirement plan, along with a 401K and two brokerage accounts.

Evolician posted...

I dont know what dat means ):

If only neon was still here to explain