Money

Roth or Traditional IRA?

Citibank / Finance$$>RSU
Dec 2

Which one are you putting money in?

Edit: poll was actually designed to see how many of you make more than $200k. 79% unsuspectedly admitted to making less than $200k YET most claim to make more. For those of you considering jumping off a building because of you comparable comp, there you go. It’s all BS.

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  • Google / Eng
    chum lee

    GoogleEng

    PRE
    Amazon
    chum leemore
    Clearly op never heard of backdoor and megabackdoor.
    Dec 22
    • Citibank / Finance$$>RSU
      OP
      Thanks for the obvious after the edit. TC? Let me guess. $350.
      Dec 2
    • Lyft / EngDamn Son
      This is the right answer. Make post tax contributions to Traditional IRA or 401(K) and rollover into Roth IRA with no income limit. It’s all about those loopholes!
      Dec 2
  • American Express / Engpapi!
    This depend on how much your are making. You can't put in Roth after certain salary level and would have to resort to backdoor technique to put in Roth.
    Dec 20
  • Google / EngPfjhebs
    I put 5500+ 27250 in Roth. 18.5+9.25k in 401k
    Dec 20
  • Facebook / EngCcdz88
    Can't contribute to either (and get tax benefits). I put quite a bit in after tax 401k which gets rolled into the Roth portion immediately, though.
    Dec 20
  • Google / EngBluths
    Wtf are you talking about dimwit? If you’re single, the income limit is $137,000, which most people at a tech company would make. I am assuming most people here are thinking of a Backdoor Roth IRA.

    The 200K limit is for married people, which again most couples at a tech company in the Bay Area make. So your poll doesn’t really tell anything.

    https://www.irs.gov/retirement-plans/amount-of-roth-ira-contributions-that-you-can-make-for-2019
    Dec 24
    • Stripe / EngAb4521
      $137k taxable. Take $25k for 401k and other pretax deductibles, and the $12k standard deduction, you’re already at $174k. If you’re at a Pre-IPO company, your stock isn’t taxable. So if your base + bonus is below $174k, you’re still eligible.
      Dec 2
    • Google / EngBluths
      Standard (or itemized) deductions are deducted after AGI. Please do some research.

      https://www.investopedia.com/terms/a/agi.asp

      Even if I agree with the 25K figure for 401K (the limit for which is 18500), that only gets to 162K. Most, if not all, engineers with more than 3 years experience would make that in TC.
      Dec 2
    • Stripe / EngAb4521
      Fine, but it’s still at $162k base + bonus for an unmarried individual working at a non-public company. Again, not TC as not all TC is taxable. That would still include a lot of junior and mid-level engineers. If you’re working at a public company, probably not.

      I said all deductions not just 401k. You’re forgetting FSA/HSA, parking/commuter benefits (if your employer doesn’t fully cover it), and many other things listed in that link.
      Dec 2
    • Google / EngPfjhebs
      Why does it matter the limit for Roth IRA? Just do backdoor Roth
      Dec 2
  • Citibank / Finance$$>RSU
    OP
    The choice was binary for a reason. Fucktard.
    Dec 21
    • VMware / EngDunDunDu
      You don’t even understand all the rules surrounding these investment vehicles LOL.
      Dec 2
  • Deloitte / Legal
    nohomobro

    DeloitteLegal

    PRE
    Deloitte
    nohomobromore
    Clever girl, OP.
    Dec 21
    • VMware / EngDunDunDu
      Op is not clever.

      1. Op makes assumption everyone is married because single contribution is not 200k.
      2. Op ignores the fact you can perform a Roth IRA backdoor
      3. Op is not aware the salary cap is not the direct salary itself but your agi.
      7d
  • Townsquare Media MisterB
    Roth is post tax

    IRA is pre-tax
    Dec 21
    • Uber rfPB87
      Lol IRA stands for “Individual Retirement Account”, has nothing to do with pre or post tax.

      What you’re thinking is “Traditional”
      Dec 2
  • Square TWyi3
    This thread is lol.
    Dec 20
  • VMware / EngDunDunDu
    Your edit is dumb. Because I put money into a traditional that rolls it into my roth
    Dec 20
  • SAP kbron
    Put 50% and 50%. It Is the best choice
    Dec 20
  • Stripe / EngAb4521
    Paper money doesn’t count with IRS income limits. So it’s totally possible for someone to be making $300k at Uber, Airbnb, etc and still be able to contribute to Roth. Because a fair chunk of that compensation is not taxable.
    Dec 20
  • Citibank / Finance$$>RSU
    OP
    And down go the percentages after my edit. Lol. Predictable.
    Dec 20
  • Citibank / Finance$$>RSU
    OP
    See edit.
    Dec 20

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