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Old 01-15-2020, 12:21 PM   #26 (permalink)
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Originally Posted by DavidVanVorous View Post
Check with your agent on this.

You will still pay taxes on the amount withdrawn and it has to have a good reason for withdrawal until you get to appropriate retirement age and start making monthly withdrawals......
Sort of....

Yes, you pay taxes on your 401k withdrawals; that gets added on to what other annual income you make.

However, you can start to withdraw once you hit 59 1/2 (I was told 59 from Fidelity Investments). I retired at 58, and at 59 1/2 I started making withdrawals, penalty free (but still pay appropriate tax witholdings)....
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Old 01-15-2020, 12:36 PM   #27 (permalink)
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Sort of....

Yes, you pay taxes on your 401k withdrawals; that gets added on to what other annual income you make.

However, you can start to withdraw once you hit 59 1/2 (I was told 59 from Fidelity Investments). I retired at 58, and at 59 1/2 I started making withdrawals, penalty free (but still pay appropriate tax witholdings)....
Thats what I understood as well (same outfit coincidentally), the key difference was Roth vs. Traditional and the "you pay up front on a Roth and You pay as you withdraw on the traditional". In my case I rolled over traditional and havent withdrawn yet (Im 67, 68 in APR).
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Old 01-15-2020, 12:47 PM   #28 (permalink)
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Check with your agent on this.

You will still pay taxes on the amount withdrawn and it has to have a good reason for withdrawal until you get to appropriate retirement age and start making monthly withdrawals. Buying house, paying for college, new kid in the family as withdrawal reasons...buying gold or stashing in a safe probably doesn't.
I know I must pay tax on it, but I'm not working now, so it will be at a low rate.

I thought the "good reason" thing only applied before 59 1/2. After that, you are at a "appropriate" retirement age. Also, I was under the impression I can withdraw any amount or all of it at once. (Not monthly)
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Old 01-15-2020, 12:53 PM   #29 (permalink)
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Just so I can feel somewhat important... I am Contributing 15% INTO my 401K...
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Old 01-15-2020, 01:03 PM   #30 (permalink)
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Just so I can feel somewhat important... I am Contributing 15% INTO my 401K...
Max that fucker out if you can. I did it by rolling all my pay raises until it was maxed out. If you never see the extra money, you don't miss it.
Lived frugal, drove a couple of pig TJ's and enjoyed life.
Retired now living the dream....
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Old 01-15-2020, 01:07 PM   #31 (permalink)
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Old 01-15-2020, 01:07 PM   #32 (permalink)
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Max that fucker out if you can. I did it by rolling all my pay raises until it was maxed out. If you never see the extra money, you don't miss it.
Lived frugal, drove a couple of pig TJ's and enjoyed life.
Retired now living the dream....

Thats just what I did with this years cost of living raise I got. Rolled it right into my 401K. And I thought the max I could contribute was 15% ?? Is it not??
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Old 01-15-2020, 01:13 PM   #33 (permalink)
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Thats just what I did with this years cost of living raise I got. Rolled it right into my 401K. And I thought the max I could contribute was 15% ?? Is it not??
https://www.irs.gov/newsroom/401k-co...-rises-to-6500
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Old 01-15-2020, 01:14 PM   #34 (permalink)
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Thats just what I did with this years cost of living raise I got. Rolled it right into my 401K. And I thought the max I could contribute was 15% ?? Is it not??
Max you can contribute is $19k

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Old 01-15-2020, 01:15 PM   #35 (permalink)
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Sure hope no one is using this thread for financial advice bunch of wrong shit posted

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Old 01-15-2020, 01:18 PM   #36 (permalink)
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Sure hope no one is using this thread for financial advice bunch of wrong shit posted

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Are you willing to elaborate on that?
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Old 01-15-2020, 01:24 PM   #37 (permalink)
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Originally Posted by DavidVanVorous View Post
Check with your agent on this.

You will still pay taxes on the amount withdrawn and it has to have a good reason for withdrawal until you get to appropriate retirement age and start making monthly withdrawals. Buying house, paying for college, new kid in the family as withdrawal reasons...buying gold or stashing in a safe probably doesn't.

BTW, theres a new weirdness going on with traditional IRAs starting 2020 compliments of the new and improved tax reduction bill of 2018.

In a nutshell by the time one hits 72 one has to either rolled it into a Roth IRA, be taking out monthly payments (and pay taxes on the withdrawals) per their schedule or face tax penalties. Apparently saving the $ in a traditional IRA and handing it off to kids on death is now unacceptable to the IRS.
you talking about SECURE act? If so, that's incorrect. RMD's are pushed back to age 72 and are like 3% of acct value beginning at 72.

sorta correct on the beneficiary IRA accts, all depends if RMDs had begun on the decedent.
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Old 01-15-2020, 01:25 PM   #38 (permalink)
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Max you can contribute is $19k

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401k's can have other "features" that let you contribute more money, namely profit sharing, new comparability and cash balance plans. I have some clients putting $50K annually into their plans.
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Old 01-15-2020, 01:56 PM   #39 (permalink)
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401k's can have other "features" that let you contribute more money, namely profit sharing, new comparability and cash balance plans. I have some clients putting $50K annually into their plans.
99% can't do that

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Old 01-15-2020, 01:58 PM   #40 (permalink)
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Are you willing to elaborate on that?
Secure act cover a couple up, nothing new on RMDs except it went from 70 to 72

The guy cashing out st 59.5 gotta plan with draws to pay zero tax or low tax bracket, not a giant tax hit.

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Old 01-15-2020, 02:16 PM   #41 (permalink)
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Max you can contribute is $19k

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I used to think that was a rule across the board, but keep in mind that only applies to 401k's. If you work for a .gov or non-profit then you can contribute more if your employer offers it.

In my case my employer offers both 403b and 457b option and the 19k (19.5k) limit is NOT a combined limit. I'm able to contribute 38k (39k for 2020) into each. Also, the employer match amount DOES NOT count towards the limits. Keep in mind that i is also all individual so my wife can contribute 19k as well into her 401k. So in our case we can keep driving used vehicles and contribute $58,500+employer match % in 2020.
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Old 01-15-2020, 03:17 PM   #42 (permalink)
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I used to think that was a rule across the board, but keep in mind that only applies to 401k's. If you work for a .gov or non-profit then you can contribute more if your employer offers it.

In my case my employer offers both 403b and 457b option and the 19k (19.5k) limit is NOT a combined limit. I'm able to contribute 38k (39k for 2020) into each. Also, the employer match amount DOES NOT count towards the limits. Keep in mind that i is also all individual so my wife can contribute 19k as well into her 401k. So in our case we can keep driving used vehicles and contribute $58,500+employer match % in 2020.
That's awesome! Are you govt or non-profit?

Private employees can contribute $19,500 this year to a 401k. Combined with an employer contribution, it maxes at $57k, but that would require a pretty healthy employer match.

Congrats on your big savings, it's the smart way to go. I hope you're thinking through what you're saving in your outside taxable accounts, too. Living cheaply and saving big mean you're primed for early retirement, but you have to figure out what to do until you're old enough to start withdrawing that stuff. We're having to save at a big rate in outside accounts so we'll actually be able to retire early.

Also, people--if you're in a high-deductible insurance plan, max out your HSA. Then don't pull anything from it. It's even better benefits than a 401k, and there is about a 99% chance that you'll have a bunch of medical expenses later in life.

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Old 01-15-2020, 04:59 PM   #43 (permalink)
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Old 01-15-2020, 05:50 PM   #44 (permalink)
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I'm guessing some of you klowns are still contributing and counting that as "growth". Wake up. It was a great year, but I have one I'm contributing to, and two other accounts that I'm not, so that's a more accurate picture, unless you monitor all your funds, their respective percentage of your portfolio, and then figure out your portfolio gains.
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Old 01-15-2020, 07:01 PM   #45 (permalink)
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Old 01-16-2020, 08:05 AM   #46 (permalink)
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99% can't do that

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didn't say it was for everyone
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Old 01-16-2020, 12:27 PM   #47 (permalink)
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Anyone else using a Roth 401k? My employer started offering it last year. Ive been using it since. Im 31 now, I am a little undecided on if its the better path or not.
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Old 01-16-2020, 12:54 PM   #48 (permalink)
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401k's can have other "features" that let you contribute more money, namely profit sharing, new comparability and cash balance plans. I have some clients putting $50K annually into their plans.
yeah but anything over 19000 last year was after tax $. It's a questionable route to take. Brokerage could be smarter unless they are trying to protect their shillings from a bankruptcy or getting sued into oblivion.
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Old 01-16-2020, 01:00 PM   #49 (permalink)
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People must be making pretty good money to be able to afford 19,500 to go into a 401K every year. Thats over 1/3 of my salary. Or im just poor. I feel im living cheap, my newest vehicle is 2008. everything but the house is payed for.
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Old 01-16-2020, 01:32 PM   #50 (permalink)
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Anyone else using a Roth 401k? My employer started offering it last year. Ive been using it since. Im 31 now, I am a little undecided on if its the better path or not.
I am around the same age as you, I currently contribute 10% to a Roth 401k. Company matches 6% which goes into a non Roth account. I also max out my Roth IRA every year, and contribute to an HSA. I have thought about switching to a traditional 401k for tax benefits and to have a little more money in each paycheck, but I am undecided. I guess I question if it is the best decision at my current income level to have two different Roth retirement accounts.

If I was sitting slightly above the next tax bracket I would switch to traditional 401k to lower my taxable income into to the lower bracket.

I really should go sit down with a financial advisor.
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