I'm hoping someone can help me understand my Vanguard retirement fund. I currently have about $375k in a company 401k (4% match) that is invested in a Vanguard Target 2035 retirement fund. I'm maxing out my contributions. When I first opened it I was doing deferred taxes, but over the last few years I've increased the % I put in after-tax (so, Roth'ing it). Currently my entire contributions are going post-tax; I'd rather pay the taxes now while I can afford it than later when I may not be able to.
My question is this: everything in my Vanguard profile is listed as a single lump sum. There's no breakdown of what amount is Roth and what amount is tax-deferred. Maybe I'm just not understanding how the fund works or something, or maybe Vanguard keeps track internally of what % is Roth and what % isn't. I'm really just trying to figure out how much of my retirement fund is Roth'd.
Or am I just misunderstanding how taxes are calculated from a fund with a mix of tax-deferred and post-tax money?
Edit: Two things: to those asking why I'd rather pay taxes now than later, it really just about minimizing expenses when I'm retired. Likewise, I just have issues with the idea of cutting a check to the IRS when I'm not earning any money (my parents deferred most of their taxes with their retirement, and between RMWs and SS they're paying 5 figures in taxes yearly; that's a Gotcha I'd rather avoid).
I did finally find the breakdown in my Vanguard account. About 40% of the money is Roth'd with most of the rest being pre-tax deferrals. There are some other things in there I don't recognize but I kinda think I know what they are.
Submitted April 03, 2022 at 10:35PM by TigerSaint https://ift.tt/wYIxcOK
