Roth 401k question

[Jones]

Am i missing something here?

With a contribution of 10% on $1000 a roth and traditional both will deduct $100.

With a roth you pay federal tax on the $1000. Lets say 15% so $150.
With traditional you only pay federal tax on $900 so $135.

You're not missing anything, I was posting before I finished my coffee...

 

[Brownslave688]

The amount that is withdrawn from my check each week for my 401k is mathmatically the percent that i chose of my gross pay. For example if made 1000 and put in 10% my withdraw is gonna say 100. Well when i log into prudential it says i have a roth 401k. Should it not be taking 10 percent of my net income since that is actually after ive paid tax? Did i miss something?

No

 

[Brownslave688]

I thought the whole idea was that you already paid taxes on the money and so you wouldnt have to pay taxes on its growth when you retire. If it comes off the gross then no taxes have been paid on it yet.

Correct

 

[Brownslave688]

It's absolutely amazing that people will spend more time researching a vacation than their entire future.

I've been obsessed with saving for retirement since I was about 20/21. In my mid 30's I still have plenty of friends that never give it a second thought.

 

[IVE GOTTA PACKAGE 4U]

I've been obsessed with saving for retirement since I was about 20/21. In my mid 30's I still have plenty of friends that never give it a second thought.

Even if you only save a couple of bucks while you are younger. That can really pile up over the decades. Especially if you increase your percentages and make more money during your career.

 

[Brownslave688]

Even if you only save a couple of bucks while you are younger. That can really pile up over the decades. Especially if you increase your percentages and make more money during your career.

And there's something mentally to starting that saving.

Start young and you'll never miss that money if you know it's going there.

 

[IVE GOTTA PACKAGE 4U]

And there's something mentally to starting that saving.

Start young and you'll never miss that money if you know it's going there.

My daughter finally got a good job and can't wait to get enrolled in the 401k.

 

[twoweeled]

You would think one could get by on the great pension offered. Lol.

1. You can't get by on it, for long.
2. because it ain't all that great.

I think you know that. lol

 

[What'dyabringmetoday???]

1. You can't get by on it, for long.
2. because it ain't all that great.

I think you know that. lol

You detected my sarcasm? We used to have a local president who said, "Yous got nothin' to worry about". So I guess everything is good. Lol.