28 yo, 120k salary, single, Roth 401k or traditional 401k

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:28 and $120K salary, may I please ask what you do? Thank you.

In health care sector. I thought everybody makes at least 200k by my age here?

Fed lawyers never make 200k. Even when they are 50. Get with reality.

Sorry. Finding reality is confusing here.

-op

I call troll

+1

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:28 and $120K salary, may I please ask what you do? Thank you.

In health care sector. I thought everybody makes at least 200k by my age here?

Fed lawyers never make 200k. Even when they are 50. Get with reality.

Sorry. Finding reality is confusing here.

-op

I call troll

Why do you think I am trolling?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:28 and $120K salary, may I please ask what you do? Thank you.

In health care sector. I thought everybody makes at least 200k by my age here?

Are you a nurse?

No PP. I am not a nurse. Rather not say it. Sorry.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You could do a mix of both and contribute to a Roth IRA

This. You want some of both for tax purposes when you retire.

Can you explain to me why it's better to have both from tax aspect? Thank you.

[Anonymous]

Anonymous wrote:

Anonymous wrote:28 and $120K salary, may I please ask what you do? Thank you.

In health care sector. I thought everybody makes at least 200k by my age here?

No that is not the case. Not sure where you got that impression.

[Anonymous]

I would do 100% to a Roth. The amount that you'll save from getting the tax dedution this year will be far less than the benefit of never having to pay taxes on the earnings of the Roth. Plus, if you roll it over to a Roth IRA, there's no required minimum distribution and you can borrow from it.

[Anonymous]

Anonymous wrote:I would do 100% to a Roth. The amount that you'll save from getting the tax dedution this year will be far less than the benefit of never having to pay taxes on the earnings of the Roth. Plus, if you roll it over to a Roth IRA, there's no required minimum distribution and you can borrow from it.

+1

[Anonymous]

I was in your position and did all Traditional. Guaranteed tax savings now to help me out more down for a house. You have no idea what the tax situation will be in the future, so in my opinion take the benefits of the moment.

[Anonymous]

Anonymous wrote:I should do Roth right?

No.

You are in the 24% tax bracket. Add in state tax (assuming VA - 5.75%), that's almost 30%. Every dollar you tax defer (traditional 401k) saves you 30 cents. On a $20,500 contribution that would be about $6,000. You can then take that $6,000 saved and invest that into a Roth IRA outside of work. That's what I'd recommend.