1st Gen Lunchtable Thread - General Discussion

I have been wanting one forever, maybe that will be my next big toy

 

I may be off here, but I don't expect to be in a lower tax bracket than I am currently when I retire in 20 years. If anything should be higher right? Yeah, Uncle Sam please tax it when its at the lowest tax rate for me, which means now and not later for me at least

 

They were telling us at the 401k meeting that with a 401k, you aren't taxed on the contribution you make but you do get taxed on it later when you retire and started getting paid out. At least that's how I understood it. I'm not familiar with IRAs though

 

I want to say IRA's are the same. Taxed when used at the current tax bracket.

 

Right, and they'll tax it at the bracket you're in when you access it. At 60 when I go to tap into it they're gonna want to tax it at my bracket I'm in at 60. That will likely be a higher bracket than the one currently. I'd rather gov put their greasy slimy hands on it now and steal it, then steal it later when they can take more of it because I'm in a higher bracket then. And I'm definitely not a accountant, I could be looking at it waaaay off as well.

 

Start a non profit charity and donate it to that

 

Oh I see what you're saying now. Uhhh I don't know actually, lmao. Making me doubt what I said in that other post lolll
I just assumed. I really don't know. I don't even know why I assumed it that way. I hope someone clarifies lol

 

and nobody knows what the rate is going to be in the future if/when you reach retirement age
all you know is what you can write off today in the present

 

What you're saying makes sense, I'm not sure if retirement income out of a 401k or IRA changes your tax bracket but I would assume that it does since it wasn't being taxed while it was growing all those years. Depending on how much you have in the end likely determines how much you get taxed. They're definitely gonna want a bite out of it sooner or later

I just googled it really quick and 401k and IRAs are considered taxable via federal income tax when they start paying out.

 

No joke my dream would be to start a non profit 'old folks' home but for old dogs. Freaking people giving old dogs to the pound after the dog has been with that family or person the animal's whole life is jacked up. I want to have somewhere that the old dogs can come and be well loved and enjoy the time they have left well loved and in peace. Life and existence should not get harder as we get old. If anything it should be vice versa
This has been the dream for a few years. I should really investigate and check it out and see how possible it is.... Or not.

 

So if you don't start taking them out until you have no income then the tax bracket is whatever the payout is from said 401K/IRA.

 

That makes sense yeah. So if the payout is higher than what your income was when you were still working, then you may very well end up in a higher tax bracket

 

Oh okay. And Roth IRA is the one they take the tax out immediately, when you deposit it?

 

I just watched a sappy xmas movie on Netflix the other night with my wife about something like that, except it was in Africa with elephants. Rob Lowe was in it, I'm not used to seeing him outside of Parks and Rec anymore

 

i just look at it this way
you cannot trust the government and the promises they make
they once said that social security distributions will not be taxed in the future
and guess what happened!!!

i would not put it past the government in the future to look at all the ROTH money sitting out there and go ahead and institute a tax on it, and double tax everybody that got suckered into the promises made

 

This. This is how I've understood it. I'm not the best at explaining financial stuff, but this is what I was trying to get at

 

I just looked that one up too out of curiosity lol...I'm just gonna quote it

The biggest difference between a Roth and a traditional IRA is how and when you get a tax break: The tax advantage of a traditional IRA is that your contributions are tax-deductible in the year they are made. The tax advantage of a Roth IRA is that your withdrawals in retirement are not taxed.

 

that is the current law

not taxed maybe subject to change...

 

Yeah his role in Park and Rec was soooooo funny. He became a fave actor of mine from it. I'll have to check that flick out, sounds like a save it for a Netflix and chill type of night with a chick/lady/broad