rest of the story is BS Wrote:
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> The rest of the story... Wrote:
> --------------------------------------------------
> -----
> > salmon cakes Wrote:
> >
> --------------------------------------------------
>
> > -----
> > > My employer matches 100% of my contribution
> up
> > to
> > > 3% of my income then 50% up to 6% of my
> annual
> > > income - how could a Roth match that kind of
> > perk?
> > > Im not talking about long term yield. Im
> > talking
> > > about I put in ~9k a year and my employer
> give
> > me
> > > and they give me 7k matching. How could I
> ever
> > > match that in a ROTH?
> > >
> > > Also My tax bracket is higher now with my
> > wife's
> > > income and my income than it will be after
> > > retirement so the deductions help more now.
> I
> > do
> > > understand the benefits of not being taxed
> upon
> > > distrubition under Roth and I understand
> yields
> > > are a wash.
> >
> >
> > Because we're not talking about a Roth IRA
> where
> > there is no employer contribution. We're
> talking
> > about a specific proposal where you could
> > contribute pre-tax up to $2,400 to your 401k
> > pre-tax. You'd only be putting in post-tax
> money
> > on whatever amount over that. Your employer's
> > matching contribution remains the same and is
> not
> > taxed on the front end.
> >
> > The "yields" are not a wash taking taxes into
> > account because, as I outlined above, you're
> > getting the benefit of your pre-tax $2,400,
> plus
> > your employer's contribution, plus the
> accumulated
> > value of ALL of that money that's put in out
> tax
> > free, while only "paying" tax on the smaller
> > percentage of whatever amount over the $2,400
> you
> > put in. In the standard case, you're paying
> tax
> > on the back end on ALL of that money, including
> > all of yours put in, your employer's
> contribution,
> > and the full accumulated end value.
>
> You are so full of shit - if you are limited to
> 2400 bucks (currently 18,000 bucks) any 'matching'
> of pretax would be 2400 as well - significantly
> lowering the current amounts of pretax matching
> and contributions. Moreover, you are guessing -
> the details of how 401k contributions by employers
> have not been released. Talk about sticking your
> partisan head up your ass.
Wrong. Apparently you can't read. Your contributions and matching would not be limited to $2,400. The limit would continue to be ~$18k/yr (or whatever).
The limit is on the pre-tax treatment of the amount over $2,400. How your matching works for a given plan would not affected by that and employer contributions would not be subject to the same limit.
I'm not guessing, I'm proving the details of the same proposal which the OP left out of their misleading post which have been discussed more fully elsewhere. What actually may happen or not is a completely separate matter.
Quote
According to The [Wall Street] Journal, a proposal under consideration would cap the annual amount that can be placed in a traditional 401(k) at $2,400 a year. Any contribution afterward would have to go toward a Roth account.
For 2017, the annual cap on traditional 401(k)s is $18,000 for people under 50 and $24,000 over 50. For an IRA, the caps are $5,500 and $6,500 for the respective age groups.
The new cap would not apply to savings already in accounts, and employer contributions to a traditional 401(k) or IRA would not be subject to a cap, according to The Journal.