401k max out or Roth ?

[vatchesa]

5% 401k ki contributing with 4% employer matching max

so in general, 401k max out pettukovatam better or Roth IRA lo pettadam better?

[LadiesTailor]

2 minutes ago, vatchesa said:

5% 401k ki contributing with 4% employer matching max

so in general, 401k max out pettukovatam better or Roth IRA lo pettadam better?

Any time 401k max out 

[galiraju]

First max out 401k and then ROTH

[Discotek]

Simple

future lo money ekuva spend chestha , ipudu tax pay chestha anukunte - ROTH

reverse case aithe - 401k

but ROTH lo mana employers evaroo match cheyaru and for most of us , future is uncertain kabatti , we go with 401k and HSA

[meandhrakurradu]

Roth is better, most likely we will have more money during retirement so pay tax now

[karna11]

Roth IRA irrespective employer ki sambandam lekunda pettukovachaa? If yes how much max?

[sarvayogi]

first of all 401k roth is just giving free money to govt...Let me explain

401k plus roth plus HSA for couple is close to 70k in 2024...sare for example taxes pote 60k

You are just parking 60k of money with govt and paying minimum monthly EMI on mortgage loan out of which only 20 percent goes to principal.

Now for 7 years ... 420k just keep paying to primary home...you will save tonnes interest there ... 30 years loan paid in 10 is literally very low interest with heavy principal payment...

Now that EMi keep investing on second homes and get rents

We are just brain fed that pension and retirement schemes cheyyakapovadam is some crime and we keep doing repeatedly without knowing the reason

[Konebhar6]

15 minutes ago, sarvayogi said:

first of all 401k roth is just giving free money to govt...Let me explain

401k plus roth plus HSA for couple is close to 70k in 2024...sare for example taxes pote 60k

You are just parking 60k of money with govt and paying minimum monthly EMI on mortgage loan out of which only 20 percent goes to principal.

Now for 7 years ... 420k just keep paying to primary home...you will save tonnes interest there ... 30 years loan paid in 10 is literally very low interest with heavy principal payment...

Now that EMi keep investing on second homes and get rents

We are just brain fed that pension and retirement schemes cheyyakapovadam is some crime and we keep doing repeatedly without knowing the reason

I understand your premise, but you have to pay tax on 60k/yr or $420K/7 yrs for your house. In essential you are paying off only 292k. Also if the interest rate on the house is less than 5, if you put your funds in 401k in index funds you make 7-10% per year. So you are making more.

401k is basically saving money for your future and saving on taxes. If you have means to make more money out of it, then you dont need to put in 401k. 

[Vaaaampire]

1 hour ago, meandhrakurradu said:

Roth is better, most likely we will have more money during retirement so pay tax now

U dont pay any tax on 401k if u take it out at retirement 

[Vaaaampire]

30 minutes ago, sarvayogi said:

first of all 401k roth is just giving free money to govt...Let me explain

401k plus roth plus HSA for couple is close to 70k in 2024...sare for example taxes pote 60k

You are just parking 60k of money with govt and paying minimum monthly EMI on mortgage loan out of which only 20 percent goes to principal.

Now for 7 years ... 420k just keep paying to primary home...you will save tonnes interest there ... 30 years loan paid in 10 is literally very low interest with heavy principal payment...

Now that EMi keep investing on second homes and get rents

We are just brain fed that pension and retirement schemes cheyyakapovadam is some crime and we keep doing repeatedly without knowing the reason

70k lo tax lu cut chesthey 60k avudda? Em lekka idhi. How did u come up with 70k in first place? Did u add employer contribution as well?

u can take loan on 401k upto 50k and payoff home mortgage too. Did u check that option?

[FrustratedVuncle]

25 minutes ago, Vaaaampire said:

70k lo tax lu cut chesthey 60k avudda? Em lekka idhi. How did u come up with 70k in first place? Did u add employer contribution as well?

u can take loan on 401k upto 50k and payoff home mortgage too. Did u check that option?

Aayana lekkallo logics and reality choodaku adakku, kopam vachi frustrate avtadu.

Vini oorkovatame 

[galiraju]

Also check the salary restrictions on roth 150k or something

[Vaaaampire]

Max 401k contribution for family is 46k. If the company matches 50%, then its 69k.

46k after tax(~30%) comes to 33k.

its upto individual to decide if they want 33k after tax money or save 46-69k(based on employer contribution).

lot of people dont explore(including me) options to invest 401k money in index funds or other bonds. I subscribed to blooom for 2 years beforw they shutting down and saw good returns. 

you can take loan on 401k upto 50k with interest which gets added to the 401k itself.

 

my personal opinion: opt in 401k. Even if things go south, u will have something when u retire. 

 

[sarvayogi]

13 hours ago, Vaaaampire said:

70k lo tax lu cut chesthey 60k avudda? Em lekka idhi. How did u come up with 70k in first place? Did u add employer contribution as well?

u can take loan on 401k upto 50k and payoff home mortgage too. Did u check that option?

401k limit 23500, roth is 6500 and roth is 4150 ..  for 2 people 65-70k.

I put 15 % tax bracket as example...so roughly 55k-60k ... not exact numbers

u can take loan on 401k upto 50k and payoff home mortgage too. Did u check that option?

idi inko daridram as you are loosing 401k growth benefits and again stuck to employer as you have to pay in full to change employer..so you go into the slave mentality of staying 3-4 years with same employer to clear it off

 

[Vaaaampire]

5 minutes ago, sarvayogi said:

401k limit 23500, roth is 6500 and roth is 4150 ..  for 2 people 65-70k.

I put 15 % tax bracket as example...so roughly 55k-60k ... not exact numbers

u can take loan on 401k upto 50k and payoff home mortgage too. Did u check that option?

idi inko daridram as you are loosing 401k growth benefits and again stuck to employer as you have to pay in full to change employer..so you go into the slave mentality of staying 3-4 years with same employer to clear it off

 

15% tax bracket vallu 70k 401k lo afford cheyyagalguthara assalu? Anduko roth after tax amount anukunta. 

enti 50k loan ki 3-4 years stuck aa employer daggara? Lol lol. do u even know that u get 3-4 months time to clear off loan after company change? In those 3 months u can move ur entire 401k with loan to new company 401k. Offcourse not all policies support that. But clear the loan and take a new loan.  401k growth benefits loose avvadam endi vayya. R u seriously expecting growth benefits even for the loan amount?