Who else is glued to the DOW?

[The King]

My brain is toast, I've been working since 3am this morning. I think you're saying it correctly, the basic idea of a ROTH is that you pay taxes now rather than later b/c you'll be in a higher tax bracket later. And hell, it looks like you and Yale are saying the same thing.

Also, any earnings on a Roth are tax-free.

[slow99]

They're deducted post tax, so you don't pay taxes on withdrawals. The downside is opportunity cost, IMO.

Yeah, I need to go to bed and quit posting bullshit, lmao!

[slow99]

I heard it was the other way around. You pay taxes on the contributions as you make the money income. The withrdawals were are not taxed. I will call ML tomorrow and get the skinny. That is who my Roth is through. I did not set my Roth up, I actually just found out that I had it; or I would know more about it.

From my understanding it is a regular IRA that the yearly max contribution ($2,000) is deductible but earnings and withdrawals ARE taxed no matter when you recieve them

My brain is toast, I've been working since 3am this morning. I think you're saying it correctly, the basic idea of a ROTH is that you pay taxes now rather than later b/c you'll be in a higher tax bracket later. And hell, it looks like you and Yale are saying the same thing.

[KBScobravert]

They're deducted post tax, so you don't pay taxes on withdrawals.

I heard it was the other way around. You pay taxes on the contributions as you make the money income. The withrdawals were are not taxed. I will call ML tomorrow and get the skinny. That is who my Roth is through. I did not set my Roth up, I actually just found out that I had it; or I would know more about it.

From my understanding it is a regular IRA that the yearly max contribution ($2,000) is deductible but earnings and withdrawals ARE taxed no matter when you recieve them

[slow99]

Asia getting raped in the mouth, every one get ready for another good time tomorrow!

Market today definitely did not show signs of one that is bottoming, that's for sure.

[Broncojohnny]

Asia getting raped in the mouth, every one get ready for another good time tomorrow!

[YALE]

Lets just hang the fucking flag upside down. 6th worst day of losses in the history of the nyse.

Dude, we knew it was coming. Aren't you some kind of stock market maestuh?

I haven't heard of that. Last I checked, ROTH contributions worked the same as 401k contributions. I can't contribute to a ROTH so I don't know the current rules.

They're deducted post tax, so you don't pay taxes on withdrawals. The downside is opportunity cost, IMO.

[slow99]

Not money going into a Roth though correct? That money is taxed as gross income now and tax free to include earnings only after age 59 1/2. Is that correct?

I haven't heard of that. Last I checked, ROTH contributions worked the same as 401k contributions. I can't contribute to a ROTH so I don't know the current rules.

[KBScobravert]

Further to al's point, contributions accumulate tax deferred - they reduce your adjusted gross income by the contribution amount. When 43 cents of each incremental dollar I earn goes to taxes, you bet your ass I say max that shit out.

Not money going into a Roth though correct? That money is taxed as gross income now and tax free to include earnings only after age 59 1/2. Is that correct?

[Captain Crawfish]

Lets just hang the fucking flag upside down. 6th worst day of losses in the history of the nyse.

[slow99]

Further to al's point, contributions accumulate tax deferred - they reduce your adjusted gross income by the contribution amount. When 43 cents of each incremental dollar I earn goes to taxes, you bet your ass I say max that shit out.

Until you are putting the most you can in the 401k then you shouldn't even put anything anywhere else, the tax advantage makes it very profitable. The maximum yearly is $16,500 or $17K, this is what you can put in, it doesn't count what your employer puts in. It also goes up every couple of years.

Thanks for the tip, gents.

[Broncojohnny]

Being serious, I already put 10% in. I figure it would probably be wise to seek other investments if I decide to start building more up. In fact, now that I've got all this free time, maybe it would be a good idea to start looking into that...


edit, or maybe more into the 401k would be better. Your thoughts?

Until you are putting the most you can in the 401k then you shouldn't even put anything anywhere else, the tax advantage makes it very profitable. The maximum yearly is $16,500 or $17K, this is what you can put in, it doesn't count what your employer puts in. It also goes up every couple of years.

[KBScobravert]

Futures already down another 3/4 of a point. Tomorrow will probably be another sell off.

I got confirmation my sells cleared out my portfolio on Thursday. I figure I may be buying it all back though in week when I see a bottom.

The tax incentive alone basically makes that a no-brainer.

Being serious, I already put 10% in. I figure it would probably be wise to seek other investments if I decide to start building more up. In fact, now that I've got all this free time, maybe it would be a good idea to start looking into that...


edit, or maybe more into the 401k would be better. Your thoughts?