Search found 6813 matches

by FiveK
Tue Jun 18, 2019 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: HSA - 2 parts: contribute and spend. When to spend?
Replies: 28
Views: 1277

Re: HSA - 2 parts: contribute and spend. When to spend?

My whole point here is once the money is in the HSA, it is just like any other tax-advantaged account if used for medical bills. But it isn't. :) $7K pre-tax into an HSA, and growth therefrom, never gets taxed if used for medical bills. $7K pre-tax into a tIRA, and growth therefrom, is taxed on wit...
by FiveK
Tue Jun 18, 2019 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: HSA - 2 parts: contribute and spend. When to spend?
Replies: 28
Views: 1277

Re: HSA - 2 parts: contribute and spend. When to spend?

In other words, they came out the same! Need to start both scenarios with the same pre-tax amounts to get apples v. apples. If one assumes $64K to pre-tax non-HSA (401k, etc.), $7K to an HSA, and a $7K medical bill, that's $64K + $7K + $7K/0.75 = $80,333.33. If the medical bill is paid after tax, t...
by FiveK
Tue Jun 18, 2019 11:16 am
Forum: Personal Investments
Topic: TIRA to Roths? help Please
Replies: 87
Views: 2433

Re: TIRA to Roths? help Please

FiveK. Thank you for all of your time and effort! It may not be reflected in my post, but I am learning, way more than my original question posed! Sure, I would love to learn how to fish, it can only enlighten me more!! I may take a break before trying, this tax stuff scrambles my cerebellum😁 When ...
by FiveK
Tue Jun 18, 2019 10:51 am
Forum: Personal Investments
Topic: TIRA to Roths? help Please
Replies: 87
Views: 2433

Re: TIRA to Roths? help Please

If you have even basic knowledge of spreadsheets, you could download the 2018 version of the personal finance toolbox spreadsheet and enter numbers that match (within a few dollars) the 2018 tax return you filed. If you don't do spreadsheets at all, we need all significant (say, over $100) entries ...
by FiveK
Tue Jun 18, 2019 10:20 am
Forum: Personal Finance (Not Investing)
Topic: HSA - 2 parts: contribute and spend. When to spend?
Replies: 28
Views: 1277

Re: HSA - 2 parts: contribute and spend. When to spend?

Am I looking at this correctly? Anyone see any problems with my logic? I just seem to always hear about the great advantages of HSAs, and they are great, but they involve two separate decisions. Anyone think it is worth it to cut back on Roth or 401K contributions to keep money saved in my HSA? See...
by FiveK
Tue Jun 18, 2019 10:12 am
Forum: Personal Investments
Topic: Suggestion for updating "Asking Portfolio Questions" thread
Replies: 143
Views: 16322

Re: Suggestion for updating "Asking Portfolio Questions" thread

Sorry, FiveK. I vote "no" on the swap. It ain't broke. Make your argument for adding a question. Single filer says tax rate is 22% federal and 9.3% state. Do you recommend traditional or Roth IRA? It depends on what else is in the post and also may require other questions including looking up their...
by FiveK
Tue Jun 18, 2019 9:31 am
Forum: Personal Investments
Topic: Suggestion for updating "Asking Portfolio Questions" thread
Replies: 143
Views: 16322

Re: Suggestion for updating "Asking Portfolio Questions" thread

retiredjg wrote:
Tue Jun 18, 2019 9:22 am
Sorry, FiveK. I vote "no" on the swap.

It ain't broke.

Make your argument for adding a question.
Single filer says tax rate is 22% federal and 9.3% state. Do you recommend traditional or Roth IRA?
by FiveK
Tue Jun 18, 2019 9:15 am
Forum: Personal Investments
Topic: Suggestion for updating "Asking Portfolio Questions" thread
Replies: 143
Views: 16322

Re: Suggestion for updating "Asking Portfolio Questions" thread

Although I'm not in favor of adding more questions to the format, if you want to give a list of why you think that adding the question would be beneficial to people asking portfolio questions, I will be open minded to reading them. Maybe it is a question that could be added. It's not an add, it's a...
by FiveK
Tue Jun 18, 2019 8:20 am
Forum: Personal Investments
Topic: Suggestion for updating "Asking Portfolio Questions" thread
Replies: 143
Views: 16322

Re: Suggestion for updating "Asking Portfolio Questions" thread

No. I meant the various MAGIs that determine if one can deduct a contribution to tIRA or which IRMAA tier one is in, or whatever. My point was that AGI is not the final information needed any more that tax bracket is the final information needed. We all know that marginal tax rate is where the rubb...
by FiveK
Tue Jun 18, 2019 7:33 am
Forum: Personal Investments
Topic: Suggestion for updating "Asking Portfolio Questions" thread
Replies: 143
Views: 16322

Re: Suggestion for updating "Asking Portfolio Questions" thread

Please do not do this. AGI does not tell us tax bracket. And AGI is not MAGI which is usually the number needed anyway. By MAGI do you mean "taxable income"? Many people are figuring out their tax bracket correctly. It's a good thing for them to learn. For those who get it wrong, there is usually a...
by FiveK
Tue Jun 18, 2019 12:52 am
Forum: Investing - Theory, News & General
Topic: A thought on mortgage payoff vs investing
Replies: 24
Views: 1988

Re: A thought on mortgage payoff vs investing

Jermbo wrote:
Mon Jun 17, 2019 9:53 pm
...the psychological effect of paying down the mortgage debt and being debt free...
...is significant for some, and negligible for others. Many in each group can't understand how the other group could think that way. ;)
by FiveK
Mon Jun 17, 2019 10:28 pm
Forum: Personal Investments
Topic: Suggestion for updating "Asking Portfolio Questions" thread
Replies: 143
Views: 16322

Re: Suggestion for updating "Asking Portfolio Questions" thread

^Looks good. If anything, it might be easier for new investors to post things such as "AGI (line 7 from last year's 1040)" instead of "Tax Rate: xx% Federal, xx% State." Also, MFJ with "Tax Rate: 22% Federal" could be anywhere from "able to make an almost fully deductible tIRA contribution" to "clos...
by FiveK
Mon Jun 17, 2019 8:28 pm
Forum: Personal Finance (Not Investing)
Topic: HSA - 2 parts: contribute and spend. When to spend?
Replies: 28
Views: 1277

Re: HSA - 2 parts: contribute and spend. When to spend?

Am I looking at this correctly? Anyone see any problems with my logic? I just seem to always hear about the great advantages of HSAs, and they are great, but they involve two separate decisions. Anyone think it is worth it to cut back on Roth or 401K contributions to keep money saved in my HSA? See...
by FiveK
Mon Jun 17, 2019 8:24 pm
Forum: Personal Finance (Not Investing)
Topic: Doing Your Own Taxes
Replies: 36
Views: 2911

Re: Doing Your Own Taxes

sarahjane wrote:
Mon Jun 17, 2019 2:46 pm
Why the reluctance to use web based versions of tax prep software?
In some cases, downloaded versions have more functionality than the "same level" (e.g., Basic, Premium, etc.) in the online version.

E.g., see viewtopic.php?p=3224633#p3224607.
by FiveK
Mon Jun 17, 2019 8:15 pm
Forum: Personal Investments
Topic: Suggestion for updating "Asking Portfolio Questions" thread
Replies: 143
Views: 16322

Re: Suggestion for updating "Asking Portfolio Questions" thread

I have created a draft wiki page: User:LadyGeek/Asking portfolio questions Great idea! I'd be interested in thoughts on whether the title "Asking Portfolio Questions" should be taken literally, or if this is intended to be "information usually needed to answer many common questions." In other words...
by FiveK
Mon Jun 17, 2019 4:08 pm
Forum: Personal Investments
Topic: TIRA to Roths? help Please
Replies: 87
Views: 2433

Re: TIRA to Roths? help Please

Then your total dividends were $21K, not $35K - correct? Im hesitant to answer as all of these.... financial words, accounting terms have very exact connotations! I do know for a fact that these are the numbers reported on my 1040 2018. I dont want to unintentionally lead all these people trying to...
by FiveK
Mon Jun 17, 2019 3:58 pm
Forum: Personal Investments
Topic: TIRA to Roths? help Please
Replies: 87
Views: 2433

Re: TIRA to Roths? help Please

FiveK...Thank you for all.your efforts on my behalf!!! If I am reading this graph correctly, It looks to my non financial eyes....it is advantageous for me to convert approx $36k, and after that its not that big of a tax difference. Is that a fair assumption? Due to the Taxation of Social Security ...
by FiveK
Mon Jun 17, 2019 3:34 pm
Forum: Personal Investments
Topic: TIRA to Roths? help Please
Replies: 87
Views: 2433

Re: TIRA to Roths? help Please

Then your total dividends were $21K, not $35K - correct? Im hesitant to answer as all of these.... financial words, accounting terms have very exact connotations! I do know for a fact that these are the numbers reported on my 1040 2018. I dont want to unintentionally lead all these people trying to...
by FiveK
Mon Jun 17, 2019 3:06 pm
Forum: Personal Investments
Topic: TIRA to Roths? help Please
Replies: 87
Views: 2433

Re: TIRA to Roths? help Please

Ok..let me shed light.. Qualified dividends....1040 line 3a...$13,802 Ordinary dividends.....1040 line 3b...$21,108 Pensions...................1040 line 5a...$28,512 SS,....,.....................1040 line 5b...$39,504 I hope this helps That changes things: https://i.postimg.cc/QMZQ2KX5/screenshot-4...
by FiveK
Mon Jun 17, 2019 3:00 pm
Forum: Personal Investments
Topic: TIRA to Roths? help Please
Replies: 87
Views: 2433

Re: TIRA to Roths? help Please

Then your total dividends were $21K, not $35K - correct?
by FiveK
Mon Jun 17, 2019 2:47 pm
Forum: Personal Investments
Topic: TIRA to Roths? help Please
Replies: 87
Views: 2433

Re: TIRA to Roths? help Please

retiredjg wrote:
Mon Jun 17, 2019 2:31 pm
FiveK wrote:
Mon Jun 17, 2019 2:23 pm
No, I used that post. ;)

Those were the numbers taken at face value.
Yeah, but they are wrong. "Qualified dividends" is a subset of "ordinary dividends". I should have subtracted.... :oops:
Maybe, maybe not. If "total dividends" are in fact ~$35K then....

Need dettom to clarify.
by FiveK
Mon Jun 17, 2019 2:23 pm
Forum: Personal Investments
Topic: TIRA to Roths? help Please
Replies: 87
Views: 2433

Re: TIRA to Roths? help Please

Qualified dividends..... $13,803 receive special tax treatment. Some may be taxed at 0% if your income is low enough (which I think it is). Some will be taxed at 15%. Ordinary dividends......$21,108 pensions....................$$28, 512 SS.............................$39,504*** $89,124 is taxed as ...
by FiveK
Mon Jun 17, 2019 2:08 pm
Forum: Personal Investments
Topic: TIRA to Roths? help Please
Replies: 87
Views: 2433

Re: TIRA to Roths? help Please

Qualified dividends..... $13,803 receive special tax treatment. Some may be taxed at 0% if your income is low enough (which I think it is). Some will be taxed at 15%. Ordinary dividends......$21,108 pensions....................$$28, 512 SS.............................$39,504*** $89,124 is taxed as ...
by FiveK
Mon Jun 17, 2019 1:23 pm
Forum: Personal Investments
Topic: TIRA to Roths? help Please
Replies: 87
Views: 2433

Re: TIRA to Roths? help Please

Here is the numbers and sources you are requesting for 2018, expect almost identical numbers for 19, cause as of June 1st, we are $3800 under budget for 19 and all sources are basically fixed. Qualified dividends..... $13,803 Ordinary dividends......$21,108 pensions....................$$28, 512 SS....
by FiveK
Sun Jun 16, 2019 10:34 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 386
Views: 13787

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

Marginal tax rate is the tax rate on a change in income (i.e. change in tax/change in income). To emphasize the "change" calculation, the marginal rate is often described as the tax rate on the "next dollar" or "last dollar" of income. However, due to the way the tax code is written (particularly t...
by FiveK
Fri Jun 14, 2019 10:16 am
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 386
Views: 13787

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

Marginal tax rate is the tax rate on a change to income, not the tax rate on one's entire income. To emphasize the "change to" calculation, the marginal rate is often described as the tax rate on the "next dollar" or "last dollar" of income. Due to the way the tax code is written, however, actual t...
by FiveK
Fri Jun 14, 2019 1:42 am
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 386
Views: 13787

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

Thanks all. Discuss! :D Any objections to going from Marginal tax rate is the tax rate on additional income. By convention, the amount of additional income is "small", so this is commonly described as the tax rate on the "next dollar" or "last dollar" income. In practice, due to rounding errors, ta...
by FiveK
Thu Jun 13, 2019 8:25 pm
Forum: Personal Finance (Not Investing)
Topic: 401K / tIRA conversions to Roth -help with guidance
Replies: 2
Views: 315

Re: 401K / tIRA conversions to Roth -help with guidance

1) for Roth conversions is there any benefit to leaving funds in 401k/403B versus rolling to tIRA? 2) what additional actions should I take now or over next 6 years based on this information, to set us up for most flexibility and tax optimization? 3) Is at as simple as guessing "space" in tax brack...
by FiveK
Thu Jun 13, 2019 11:58 am
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 386
Views: 13787

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

Yes it is. Going by the legend (grey is "Marginal" and blue is "Cumulative"), one can save 22% on any t401k contribution from $1 to something over $18K (the actual number is $18,325). The blue line is superimposed upon the grey line over this range. Between "something over $18K" and the t401k contr...
by FiveK
Thu Jun 13, 2019 10:50 am
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 386
Views: 13787

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

Is there a real world scenario where this happens or are you saying one is at the margin between the 12 and 22% brackets during withdrawals? Very real world. E.g., take a single filer earning with $70K W-2 earnings if no t401k contributions are made. You could use the personal finance toolbox Excel...
by FiveK
Thu Jun 13, 2019 10:43 am
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 386
Views: 13787

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

But that doesn't mean that one should use the average rate to make decisions. If I am $3K above the 12%/22% boundary and I expect to pay 15% on withdrawals from Traditional, I am likely to split my $6K contribution, with $3K to Traditional and $3K to Roth. I wouldn't use the average rate of 17% and...
by FiveK
Wed Jun 12, 2019 11:52 pm
Forum: Personal Investments
Topic: Roth 403(b) AND annual Roth IRA contribution
Replies: 9
Views: 507

Re: Roth 403(b) AND annual Roth IRA contribution

neurosphere wrote:
Wed Jun 12, 2019 3:32 pm
...making deductible employer contributions....
How does that work if one is not self-employed?
by FiveK
Wed Jun 12, 2019 11:45 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 386
Views: 13787

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

Is there a real world scenario where this happens or are you saying one is at the margin between the 12 and 22% brackets during withdrawals? Very real world. E.g., take a single filer earning with $70K W-2 earnings if no t401k contributions are made. You could use the personal finance toolbox Excel...
by FiveK
Wed Jun 12, 2019 11:31 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 386
Views: 13787

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

Sure, but why would a lump sum necessarily be better? Don't think anyone said it would be "better" from a green-eye-shade financial perspective. What do you mean by "better"? Wisest course of action. Unfortunately that is subjective. E.g., if only "a few hundred" dollars of a $19K 401k annual contr...
by FiveK
Wed Jun 12, 2019 11:13 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 386
Views: 13787

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

Lee_WSP wrote:
Wed Jun 12, 2019 11:09 pm
Sure, but why would a lump sum necessarily be better?
Don't think anyone said it would be "better" from a green-eye-shade financial perspective. What do you mean by "better"?
by FiveK
Wed Jun 12, 2019 10:20 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 386
Views: 13787

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

When one chooses a lump sum, the answer is the same whether one calculates the weighted average single dollar rates, or simply does (change in tax)/(lump sum amount). Do we all agree on that much? (change in tax)/(lump sum amount) is the average tax rate, which is the same as the weighted sum of th...
by FiveK
Wed Jun 12, 2019 6:49 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 386
Views: 13787

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

And if one chooses to make a lump sum contribution or conversion (instead of going dollar by dollar), the applicable marginal rate is (change in tax)/(amount). No. :-) The optimal is found by going dollar by dollar, in order to determine if the lump sum crosses any marginal tax rate boundaries, whe...
by FiveK
Wed Jun 12, 2019 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 386
Views: 13787

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

And who says I don't support "marginal rate when contributing and average rate on withdrawal"? It is necessary when analyzing the SS hump. If that is still your position, then it's not worth repeating all the posts from 3 years ago. Thank goodness. Just for completeness, my position is that knowing...
by FiveK
Wed Jun 12, 2019 11:13 am
Forum: Personal Investments
Topic: Roth 401k vs traditional 401k
Replies: 6
Views: 515

Re: Roth 401k vs traditional 401k

We are currently in a high tax bracket and our taxable income is around $700k/year. Does it make sense to put any of that money into the Roth 401k for tax diversity? I always thought that my tax rate in retirement would be lower than what my current rate is, but am I missing something? Might be wor...
by FiveK
Wed Jun 12, 2019 10:38 am
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 386
Views: 13787

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

rkhusky wrote:
Wed Jun 12, 2019 7:45 am
And who says I don't support "marginal rate when contributing and average rate on withdrawal"? It is necessary when analyzing the SS hump.
If that is still your position, then it's not worth repeating all the posts from 3 years ago.
by FiveK
Wed Jun 12, 2019 12:39 am
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 386
Views: 13787

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

rkhusky, it's good to see that you no longer support the "Marginal rate when contributing, average rate on withdrawal" notion expressed in Traditional 401k versus Roth 401k - Bogleheads.org 3.5 years ago, and the wiki edits you made then: https://www.bogleheads.org/w/index.php?title=Traditional_vers...
by FiveK
Tue Jun 11, 2019 6:24 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 386
Views: 13787

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

Lower case t. Roth is capitalized because it is a person's name. One minor correction. "Roth" is not capitalized because it is a person's name. See: Roth IRA Named after US Senator William Roth, Roth IRAs were established by the Taxpayer Relief Act of 1997. Ok, now I get it: it's not ROTH, but it i...
by FiveK
Tue Jun 11, 2019 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 386
Views: 13787

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

I agree that "difference" is not the same as "derivative," but by defining marginal as a difference instead of a derivative seems to adequately address that point. Even if we go with your proposal, we still need a term for (what I prefer to call) the marginal rate within an interval, if we're using...
by FiveK
Tue Jun 11, 2019 4:48 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 386
Views: 13787

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

How do you suggest we move forward? Taking the draft versions as of this date and time and moving them to the public wiki would work. The problem is that I, and the majority of other contributors in this thread, disagree with the way it's written now. I've tried to avoid an "edit wars" situation an...
by FiveK
Tue Jun 11, 2019 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 386
Views: 13787

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

Real-world marginal rate > 100% MFJ no children, AGI $38,000 reflects $2000 contribution to IRA. Tax before credit is $1403 per tax table. Couple receives savers credit of $1000. Tax = $403. MFJ no children, AGI $38,001 reflects $2000 contribution to IRA. Tax before credit is still $1403. Couple re...
by FiveK
Tue Jun 11, 2019 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 386
Views: 13787

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

How do you suggest we move forward? I added some references for the common usage of next/last dollar, but they seem to have been deleted. I was going to suggest that someone add a sentence about other usages for marginal, and associated references. Moved, not deleted (I believe). At least, the inte...
by FiveK
Tue Jun 11, 2019 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 386
Views: 13787

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

When the personal finance community switches from using "marginal" to using "average marginal" to describe what tax rates should be compared on the contribution and withdrawal ends, then we can revert to using the calculus-based definition of marginal. Until then we should help people by explaining...
by FiveK
Tue Jun 11, 2019 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 386
Views: 13787

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

When the personal finance community switches from using "marginal" to using "average marginal" to describe what tax rates should be compared on the contribution and withdrawal ends, then we can revert to using the calculus-based definition of marginal. Until then we should help people by explaining ...
by FiveK
Mon Jun 10, 2019 8:31 pm
Forum: Personal Investments
Topic: Pre tax 401k or Roth 401k
Replies: 7
Views: 685

Re: Pre tax 401k or Roth 401k

I know the difference between both accounts. Just confused on which is right for me. I know we can’t tell the future and know where the tax rate will be. Correct, we can't know what our future tax rates will be. Unless one wants to resolve the issue by coin flipping (or going 50/50 so at worst it w...
by FiveK
Mon Jun 10, 2019 9:49 am
Forum: Personal Investments
Topic: Roth 401k vs. (Traditional 401k+Taxable account)
Replies: 13
Views: 1145

Re: Roth 401k vs. (Traditional 401k+Taxable account)

If you are paying 22% tax rate now to put money in Roth 401k, you need to be certain you will pay that same tax rate or higher in the future on the withdrawal. Which means, your existing tax deferred balances should be 20 times the top of 12% bracket. That is just a few dollars less than $40k for s...