Hihi
I am seeking advice on why you should keep money in 401k plan vs rolling it over periodically into a Roth IRA. I was looking at some numbers and came up with this:
ROLLING OVER ROUTE
- Lets assume you + employer contribute 22,500 into 401k this year.
- 13,500 goes into Roth ITA after rolling it over (takes a 40% tax hit).
- At a 6% return rate over 30 years, you end up with 81.3k
Alternatively,
KEEPING 401k ROUTE
- You + employer contribute 22,500 into 401k this year.
- At a 6% return rate over 30 years, you end up with 135.5k.
- Taxed at 40% upon withdrawal, this results in 81.3k
Since both variants result in the same amount of money after 30 years, what benefits does leaving money in 401k over Roth IRA provide? I am predicting to remain in a high tax bracket post retirement. My view is that a Roth IRA will provide you with more flexibility and higher potential growth if you were to trade with that account, such as selling options against your positions.
What am I failing to consider?
Submitted December 23, 2023 at 03:46AM by OmedOmedOmed https://ift.tt/Y0t3ZUo
