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.
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.
See edit.
And down go the percentages after my edit. Lol. Predictable.
Roth is post tax IRA is pre-tax
Lol IRA stands for “Individual Retirement Account”, has nothing to do with pre or post tax. What you’re thinking is “Traditional”
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.
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
$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.
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.
I put 5500+ 27250 in Roth. 18.5+9.25k in 401k
Put 50% and 50%. It Is the best choice
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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.