What is Better Roth or Regular IRA?

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[kandaffar]

Or put, $5, 000 into traditional and $4, 000 into Roth. Then in 10 years, you can withdraw from the traditional at the lower marginal tax rates and from the Roth once your income will cross the threshold for the higher 20% bracket.

[murraykeith]

I'm not the sharpest knife in the drawer but you're saying that you're taxed on the total 401, not the net gain?
I'd say 20% tax would be $2000 not $4000.

[kentuckyleisure]

Very much novice here but i think it matters how much that you have in your 401k. If you have a large amount, say 4 million, you will be eventually paying very high taxes due to RMD's. If you only have about one million, you would be more able to control your withdraws to keep it just in/under the 22-24 tax rate. Im trying to figure this out now myself.

[johnnybq]

Taking that 401k out now… since it’s coming out above our pension and SS, investment income… all the 401k is getting hit with the highest bracket rate ( more than 20%.

[ghanna]

Ok, it doubles. What about the rate of inflation and taxes in ten years?

[HHH-nvxb]

Why would the government give us a break? That just want to give us an illusion that they are. We really don't have that magical crystal ball do we?

[rolandosouffrain]

This is so wrong. Lol. I already maxed out my Roth ira at $7k. If I max out my traditional ira at $7k. Lol so both at $7k. So in 10 yrs I have $14k in both. Hmmmm I rather have the $14k Roth. Lol. Same with a 401k. I max it out at $23k. Hmmm. I rather have $46k in Roth in 10 yrs. He is so wrong. Lol 🤣 😂 😆 😹