DK Firearms

The vape people aren't gonna like this.

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  • toddnjoyce

    TGT Addict
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    4   0   0
    Sep 27, 2017
    19,285
    96
    Boerne
    I've moved everything to a ROTH. Is there a reason you use traditional?

    I’m full Roth except one small traditional IRA that exists for two reasons.

    1. Employer contributions to a 401K are pre-tax dollars. This account gives me a vehicle in place for instances where those employer contributions can be rolled over to so that I can avoid conversion to a Roth and taking a tax hit. We allow in-service distributions at a certain age and that trad IRA allows us a lot of flexibility when I hit that age. If I’m no longer with this employer then, it gives me a vehicle to roll those employer contributions over to so I control the money and investments instead of my plan’s administrator and avoid the tax hit.

    2. Vehicle in place for backdoor Roth (so long as that will be allowed).

    Due to our company compensation plan and 401k match rate changing and wife’s new job, we are quickly approaching Roth phase outs. One way for us to avoid that is for me to split my 401K contribution ($19.5K max for 2021) between Roth 401K and trad 401K so that we can lower our AGI and MAGI and still qualify for full Roth. There is a fine line on whether this strategy works for any given scenario and we have to evaluate it each year. One thing that limits our tax strategies is that we’re not eligible for HSAs.

    While I’m not opposed to paying my ‘fair’ share, when 61% of taxpayers aren’t paying at all, I can’t ever pay a ‘fair’ share. Even in normal years, about 40-45% of taxpayers end up not paying any income tax after credits and such. That’s still nowhere near me paying a ‘fair’ share.
     

    SQLGeek

    Muh state lines
    Rating - 100%
    4   0   0
    Sep 22, 2017
    9,591
    96
    Richmond
    Fûcking don’t get me started. I’m almost to the point of being worth going to full traditional IRA/401K solely in tax-free bonds, but I won’t give those fûckers the satisfaction of financing their current dreams.

    Yeah, I'm straight pissed off. Finally getting to the point in my life when I have a little more than two nickels to rub together and the gov is going to go and phuck it up.

    That would be the ultimate troll job if it wouldn't screw you worse.
     

    SQLGeek

    Muh state lines
    Rating - 100%
    4   0   0
    Sep 22, 2017
    9,591
    96
    Richmond
    I've moved everything to a ROTH. Is there a reason you use traditional?

    I use both for the taxable income mix at retirement. Traditional will help fill the bottom of the bracket along with Social Security (lol), Roth to fill the top to keep taxable income from being too high. I did Roth a lot when I was younger and earning less. Now that I'm doing better, I am doing more traditional to keep my AGI lower.

    It's a crapshoot because we don't know what the income tax rates will be like at retirement (probably will be a ton higher). I also am not sure with inflation how much spending power I will have then.

    Keeping the mix is hedging my bets essentially. Full roth isn't a horrible strategy IMO just not the way I'm going right now.
     

    DoubleDuty

    TGT Addict
    Rating - 100%
    2   0   0
    Feb 9, 2019
    3,682
    96
    DFW
    I’m full Roth except one small traditional IRA that exists for two reasons.

    1. Employer contributions to a 401K are pre-tax dollars. This account gives me a vehicle in place for instances where those employer contributions can be rolled over to so that I can avoid conversion to a Roth and taking a tax hit. We allow in-service distributions at a certain age and that trad IRA allows us a lot of flexibility when I hit that age. If I’m no longer with this employer then, it gives me a vehicle to roll those employer contributions over to so I control the money and investments instead of my plan’s administrator and avoid the tax hit.

    2. Vehicle in place for backdoor Roth (so long as that will be allowed).

    Due to our company compensation plan and 401k match rate changing and wife’s new job, we are quickly approaching Roth phase outs. One way for us to avoid that is for me to split my 401K contribution ($19.5K max for 2021) between Roth 401K and trad 401K so that we can lower our AGI and MAGI and still qualify for full Roth. There is a fine line on whether this strategy works for any given scenario and we have to evaluate it each year. One thing that limits our tax strategies is that we’re not eligible for HSAs.

    While I’m not opposed to paying my ‘fair’ share, when 61% of taxpayers aren’t paying at all, I can’t ever pay a ‘fair’ share. Even in normal years, about 40-45% of taxpayers end up not paying any income tax after credits and such. That’s still nowhere near me paying a ‘fair’ share.
    There is no fair share. The government mismanages all the money they print, borrow and tax.
     

    Darkpriest667

    Actually Attends
    Lifetime Member
    Rating - 100%
    9   0   0
    Jan 13, 2017
    4,489
    96
    Jarrell TX, United States
    I use both for the taxable income mix at retirement. Traditional will help fill the bottom of the bracket along with Social Security (lol), Roth to fill the top to keep taxable income from being too high. I did Roth a lot when I was younger and earning less. Now that I'm doing better, I am doing more traditional to keep my AGI lower.

    It's a crapshoot because we don't know what the income tax rates will be like at retirement (probably will be a ton higher). I also am not sure with inflation how much spending power I will have then.

    Keeping the mix is hedging my bets essentially. Full roth isn't a horrible strategy IMO just not the way I'm going right now.

    You can bet your asses all taxes will be higher by the time I retire in 2045
     

    toddnjoyce

    TGT Addict
    Rating - 100%
    4   0   0
    Sep 27, 2017
    19,285
    96
    Boerne
    I use both for the taxable income mix at retirement..
    It’s not a bad strategy so long as RMDs don’t end up being too high. Another thing that burns my ass is the number of professionals I need to consult with just to keep myself from getting f’d at the drive thru.

    I’ll probably never ‘stop’ working because I need something to keep me learning and my mind engaged. I can’t give my goods/services away, so I need a mix of advice on when to start things like social security and RMDs to understand how much of that I can supplement w/earnings and how much pro bono time I’d have to give away to avoid reductions based earnings and mitigate taxes.

    I’m probably overthinking it, but it pays to be prepared and if I win power ball all bets are off, except the working bit…I’ll still need to do something even if I was in FU levels of money.
     

    1911'S 4 Me

    TGT Addict
    TGT Supporter
    Lifetime Member
    Rating - 100%
    1   0   0
    Sep 13, 2018
    5,381
    96
    Humble
    Demoroids raise taxes every time they are control WH., congress.

    Will there be more tax on Hunter's crack smoking habit?
     

    Bozz10mm

    TGT Addict
    Rating - 0%
    0   0   0
    Oct 5, 2013
    9,616
    96
    Georgetown
    They are hitting all tobacco products. Cigarette smokers will see a $1.00 per pack increase.


    For cigarettes in particular, the tax increases could ultimately result in smokers paying about $1 more per pack, according to Ulrik Boesen, a senior policy analyst tracking excise taxes for the Tax Foundation. He said it is harder to track the exact effect on vaping since it may vary considerably based on a company’s products, their potency and how it chooses to pass any added expense onto purchasers.
     
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