Tax the pension and 401(k) incomes?

#2
#2
"Michigan currently charges no income tax on public pensions and exempts up to $45,120 worth of income from private pensions, 401(k)s and IRAs for an individual retiree, "

Why? This absurd.
 
#4
#4
If retirement savings is taxed before it goes to savings, then it isn't taxed when it's taken out. If it is not taxed then it is taxed when it's taken out. No?
 
#6
#6
azVolFan said:
If retirement savings is taxed before it goes to savings, then it isn't taxed when it's taken out. If it is not taxed then it is taxed when it's taken out. No?
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Even when you pay taxes before putting it in a Roth IRA, the capital gains are still taxed when they are taken out. Your not making a dime in this country without giving the government three and a half pennies.
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#12
#12
I have my first 5% going into a 401k(to get my company match) the other 10 goes roth.
 
#13
#13
rmsmith said:
I have my first 5% going into a 401k(to get my company match) the other 10 goes roth.
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No matching funds available for me. Smart on your part though. No reason to turn down free money. Wife gets up to 10% match.
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#14
#14
Roth's are a great vehicle to use if you qualify and are looking to use the funds for retirement.

It is smart though to have another vehicle that is gaining which can be used in short term needs if necessary.
 
#18
#18
JayVols said:
This is what I understood to be true. Only tax deferred investments are subject to taxes upon withdrawl.
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Oops. My bad. It's been a few years since I looked at the differences. I thought it was just like a regularly taxed account.
 
#19
#19
volnation2217 said:
Oops. My bad. It's been a few years since I looked at the differences. I thought it was just like a regularly taxed account.
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No problem. This stuff changes often. Can be hard to keep up with. And I'm not an expert. I would fall under the jakeleg catagory.?
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#20
#20
JayVols said:
No problem. This stuff changes often. Can be hard to keep up with. And I'm not an expert. I would fall under the jakeleg catagory.?
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The bad part is that I have an uncle that is a financial advisor with millions of dollars under management and I don't even know the difference in retirement accounts. He has me supplementing my 401k heavy right now because of the company match. It's been making a good return so I haven't asked as many questions as I probably should.
 
#21
#21
volnation2217 said:
The bad part is that I have an uncle that is a financial advisor with millions of dollars under management and I don't even know the difference in retirement accounts. He has me supplementing my 401k heavy right now because of the company match. It's been making a good return so I haven't asked as many questions as I probably should.
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Can't argue with the company match. It's free money, added salary to a degree. If you can get it, take it.
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#23
#23
volnation2217 said:
The bad part is that I have an uncle that is a financial advisor with millions of dollars under management and I don't even know the difference in retirement accounts. He has me supplementing my 401k heavy right now because of the company match. It's been making a good return so I haven't asked as many questions as I probably should.
Click to expand...

It's good advice. 401k is just a retirement plan.

When you retire you'll roll it to an Ira and invest in a diversified mix of investments.
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