Tax the pension and 401(k) incomes?

#27
#27
Same as a Roth Ira. Just after tax money, that can be withdrawn tax exempt.
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K. The term just threw me a little as I associate a 401k as a tax deferred retirement with taxes @ withdrawl. Roth I associate with an after tax investment free from taxes upon withdrawl.
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#28
#28
K. The term just threw me a little as I associate a 401k as a tax deferred retirement with taxes @ withdrawl. Roth I associate with an after tax investment free from taxes upon withdrawl.
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Meant lower tax brackets for Roths.

It can be confusing, but all retirement plans are simply designed to give an incentive to save.

Roths are designed for the tax brackets.

Whenever you retire, just make sure you have predictable income to replace your paycheck. And max out your 401k, or whatever type of plan your employer offers.
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#29
#29
Meant lower tax brackets for Roths.

It can be confusing, but all retirement plans are simply designed to give an incentive to save.

Roths are designed for the tax brackets.

Whenever you retire, just make sure you have predictable income to replace your paycheck. And max out your 401k, or whatever type of plan your employer offers.
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Oh, I see now. Thanks. I have a personal Roth and a member of TCRS (TN state pension plan) no matching contributions since it is state not private.
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#30
#30
Oh, I see now. Thanks. I have a personal Roth and a member of TCRS (TN state pension plan)
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When you retire your state plan will give you the option to take out a guaranteed payment for single or joint life an maybe some period certain options or the choice to roll it to an ira.

The benefit of that is its predictable, the downside is you lose the ability for growth.
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#31
#31
When you retire your state plan will give you the option to take out a guaranteed payment for single or joint life an maybe some period certain options or the choice to roll it to an ira.

The benefit of that is its predictable, the downside is you lose the ability for growth.
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It's not a bad idea when you are planning to retire to speak to an advisor with a good reputation, that can research products that can keep you invested and still offer income protection. If nothing comes close to your pension, stick w that guarantee.
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#32
#32
When you retire your state plan will give you the option to take out a guaranteed payment for single or joint life an maybe some period certain options or the choice to roll it to an ira.

The benefit of that is its predictable, the downside is you lose the ability for growth.
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Yeah. It's called 'leveling' if not mistaken. Or I may be thinking of SSI...
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#33
#33
Yeah. It's called 'leveling' if not mistaken. Or I may be thinking of SSI...
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You are lucky. I think it's like 9% of the workforce actually has pensions today.
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#34
#34
If you wanna make 2 percent. Roth is a retirement plan.

CD is an actual investment. Apples and oranges.
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Oh i know, should've quoted NEOCON. I was replying to him when he said
It is smart though to have another vehicle that is gaining which can be used in short term needs if necessary.
was wondering what kind of investments he meant by short term.
 
#35
#35
You are lucky. I think it's like 9% of the workforce actually has pensions today.
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Not complaining. I wont get rich, but it's ok. We had a discussion a few days ago and a poster said some state employed in Cali get a pension of 80% salary. That's crazy. I'm in line for 48% after 30 years. I'm 17 yrs in. I have to have a personal retirement savings plan as 48% won't cut it by itself.
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#36
#36
Oh i know, should've quoted NEOCON. I was replying to him when he said

was wondering what kind of investments he meant by short term.

Well this has been a conversation on qualified and retirement plans, which technically none are 'short-term'. Technically w a Roth u can take out principal tax free I believe after 5 years.

Short term is just another way saying liquid.
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#37
#37
Not complaining. I wont get rich, but it's ok. We had a discussion a few days ago and a poster said some state employed in Cali get a pension of 80% salary. That's crazy. I'm in line for 48% after 30 years. I'm 17 yrs in. I have to have a personal retirement savings plan as 48% won't cut it by itself.
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Yeah pensions can get out of hand, but that's the way it goes.
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#38
#38
You will be hit with a 10% penalty on all earnings unless you are 59 1/2 even with a Roth. Roth's are a very good retirement tool if you qualify but it won't be enough to support most people's retirement even if they do max out for 30 years. Also, not everyone qualifies. The other problem with a Roth is you cannot dump alot of money into it per year. 5000k per year right now unless you are in the catch up phase. It is a good tool to place extra money above and beyond your 401k contribution into.

The reality is, though, if you have alot of money you want to place into a retirement vessel there is a very good chance you will not qualify for a Roth.
 
#39
#39
Not sure if any of your are your own bosses but if you are look into a SEP. The nice part is it has less admin fees than a 401k and you can basically max out at the same. You can not take a loan against a SEP though.
 
#40
#40
NoMoreTaxes200x160.jpg
 
#41
#41
Not sure if any of your are your own bosses but if you are look into a SEP. The nice part is it has less admin fees than a 401k and you can basically max out at the same. You can not take a loan against a SEP though.

Taking out a loan against retirement funds should be an absolute last resort
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#42
#42
I have both a pension and 403b with employer contribution. It's a sweetheart deal and the tax payers regularly have to kick in to cover shortfalls in the pension.

Both of my contributions (to the pension and 403b) are tax exempt on the front-end so I'll be paying taxes on the disbursements.
 
#43
#43
I have both a pension and 403b with employer contribution. It's a sweetheart deal and the tax payers regularly have to kick in to cover shortfalls in the pension.

Both of my contributions (to the pension and 403b) are tax exempt on the front-end so I'll be paying taxes on the disbursements.
I hate you :)

Wait are you employed by the state of bammer? If so take every dime they (taxpayers) have
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#44
#44
I hate you :)

Wait are you employed by the state of bammer? If so take every dime they (taxpayers) have
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I'm a pseudo-state employee I guess. We get state funds but we also generate revenue via tuition and grants/contracts.

Pension costs not covered by the fund do come from tax payers though - same with sweet health insurance.
 
#47
#47
You are lucky. I think it's like 9% of the workforce actually has pensions today.
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My company got rid of the pension plan for new hires in 2002

Then their going to stop contributions for existing employees in 2017..I'll have 22 years at that point, so I'll still be set

The 401k- you can invest up to 16%, with the first 6% matched...
 
#48
#48
My company got rid of the pension plan for new hires in 2002

Then their going to stop contributions for existing employees in 2017..I'll have 22 years at that point, so I'll still be set

The 401k- you can invest up to 16%, with the first 6% matched...


That's a good match. My company is 4 or 5% match. Can't remember.
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