Reply to Roth 401k in 35% Tax Bracket

Forum Index » Money and Finances

Reply to "Roth 401k in 35% Tax Bracket"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]I have been in the top tax bracket since I started my first company 23 years ago. I converted all funds into a roth the moment it was eligible and then switched to roth 401K once it became available.  I have paid a ton in taxes for funds currrently in our roth. But we have a bit over $3.6M in our roths today in our late 40s. We have assets of another $35-$40M outside.

I continue to believe they putting funds into the roth was the right move for us and is probably right for you. Based on my assumption that you have a multi million dollar income and tens of millions in net worth.

We will have way more than we could ever spend and the idea that the money grows tax free forever is crazy. It also effectively pulls the funds out of our estate. And lastly, I absolutely believe that taxes will be higher in the future. Heck, I believed that when taxes were 39.6% and DC another 9.5% at the time.

There will be a day of reckoning to come for tax rates. And those with net worth of $50M+ and annual multiple million dollar passive incomes will be the ones to pay it. Rightfully so. But if I can accumulate $10-$20M exempt from taxes due to payments when I contributed, I’m going to do so. [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics