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Topic	It's 2/3 through the year. Have you contributed to your roth IRA yet?
Kuuko 09/06/23 1:50:47 PM #19:	royic posted... Why would I want to pay the taxes on my retirement fund now instead of when I'm retired and don't have the source of my largest taxable income (a job). If you're talking about Traditional vs Roth in general (paying taxes now or paying taxes later) then you're right that for a lot of people Traditional makes more sense. But this nuance is more of a 401k thing than an IRA thing. The reason being that the income limit to deduct Traditional IRA contributions is fairly low. For most people, you can't deduct a Traditional IRA contribution if you make over ~73,000 https://www.irs.gov/retirement-plans/2023-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-covered-by-a-retirement-plan-at-work Roth IRAs also have a contribution limit, but it's much higher, and also doesn't even really exist because of the Backdoor Roth loophole. And the IRS is okay with everyone doing the loophole even though it's silly and defeats the purpose of the contribution limit. --- http://i.imgur.com/dzGMd.png <cite>Kuuko posted [p:975897783] in It's 2/3 t... [t:80557646]...</cite> <quote>royic posted... </cite><quote>Why would I want to pay the taxes on my retirement fund now instead of when I'm retired and don't have the source of my largest taxable income (a job).</quote>If you're talking about Traditional vs Roth in general (paying taxes now or paying taxes later) then you're right that for a lot of people Traditional makes more sense. But this nuance is more of a 401k thing than an IRA thing. The reason being that the income limit to deduct Traditional IRA contributions is fairly low. For most people, you can't deduct a Traditional IRA contribution if you make over ~73,000https://www.irs.gov/retirement-plans/2023-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-covered-by-a-retirement-plan-at-workRoth IRAs also have a contribution limit, but it's much higher, and also doesn't even really exist because of the Backdoor Roth loophole. And the IRS is okay with everyone doing the loophole even though it's silly and defeats the purpose of the contribution limit. --- http://i.imgur.com/dzGMd.png</quote> ... Copied to Clipboard!
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