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Traditional 4 0 1 ( k ) versus Roth 4 0 1 ( k ) Poornima has decided to contribute to a savings program. She
Traditional versus Roth Poornima has decided to contribute to a savings program. She can open a traditional or a Roth and has determined that she car a $ contribution. Poornima's salary is $ per year, and she is in the tax bracket. If Poornima decides to go with a traditional her contribution amount will be And the amount offset via a reduced tax bill will be If instead, Poornima decides to go with a Roth k her contribution amount will be And the amount offset via a reduced tax bill will be Assuming all the same facts, suppose that Poornima decides to open both plans, splitting what she can afford to contribute equally betwe both plans. Under this scenario, Poornima's contribution amount will be And the amount offset via a reduced tax bill will be When Poornima retires, which plan's monies will she be able to exclude from taxable income?
Traditional versus Roth
Poornima has decided to contribute to a savings program. She can open a traditional or a Roth and has determined that she car a $ contribution. Poornima's salary is $ per year, and she is in the tax bracket.
If Poornima decides to go with a traditional her contribution amount will be
And the amount offset via a reduced tax bill will be
If instead, Poornima decides to go with a Roth k her contribution amount will be
And the amount offset via a reduced tax bill will be
Assuming all the same facts, suppose that Poornima decides to open both plans, splitting what she can afford to contribute equally betwe both plans.
Under this scenario, Poornima's contribution amount will be
And the amount offset via a reduced tax bill will be
When Poornima retires, which plan's monies will she be able to exclude from taxable income?
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