tag:blogger.com,1999:blog-6185259769000183348.post2326642370468681036..comments2009-08-12T06:56:42.345-07:00DogAteMyFinanceshttp://www.blogger.com/profile/02571124283388079010noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-6185259769000183348.post-24135622605594667982009-08-12T06:08:34.768-07:002009-08-12T06:08:34.768-07:00Bear in mind that the breakpoints for the tax brackets are routinely adjusted (essentially, for inflation, although I don&#39;t think they use that term). So it is possible that 350K might not be in the top tax bracket 40 years from now, even if there are not big changes in the tax law.<br /><br />I have laid out some Roth / 401(k) scenarios here - looking at which makes sense given a particular set of life circumstances.<br /><br />http://www.observingcasually.com/roth-vs-401k/<br /><br />Congrats on having the ability to sock away 15K annually in a Roth 401(k). I think you&#39;ll be OK at retirement ...Kosmo @ The Casual Observerhttp://www.observingcasually.com/noreply@blogger.comtag:blogger.com,1999:blog-6185259769000183348.post-27080748160650889832008-08-05T19:48:40.932-07:002008-08-05T19:48:40.932-07:00Bad advice. It depends on income, where you live, where you plan on retiring, and what you plan on doing for the rest of your life. Why?<BR/><BR/>Because you have a 401k and decided to not work for 1-2 year. Roll that sucker into a regular Roth IRA that year and pay 15-20% taxes. Why pay more taxes than you have to?<BR/><BR/>Second, if you live in a high income state, I know you don't, but you are giving bad advice to people, like CA or NY, then move to Washington or Texas or New Hampshire or Florida, bammo, you just saved paying state income taxes. Which in CA is 12%. Ouchie. Can you make that sucker up??? No.<BR/><BR/>Third, read this and run the numbers again. Every scenario is different depending on your personal situation. http://www.fpajournal.org/CurrentIssue/TableofContents/ThinkingAboutaRoth401kThinkAgain/<BR/><BR/>Fourth and final do you wanna be Buffet or not? A roth is not necessarily the answer. You want to be able to live on dividends and long term capital gains.<BR/><BR/>Also funny thing, being a independent business owner makes things different. How different? Well things can be written off like your leased car. So reconsider and run more numbers! A bad year economy and business, time to roll the regular 401k!Living Almost Largehttp://www.blogger.com/profile/06655673945207221609noreply@blogger.comtag:blogger.com,1999:blog-6185259769000183348.post-29342795899623808152008-08-01T11:16:57.917-07:002008-08-01T11:16:57.917-07:00Hey, I'm pondering the same thing and found your calculation helpful... if you don't mind, I'd like to link your post to the one I'm currently writing on the topic#1HB4BDhttp://www.blogger.com/profile/03314222033014754994noreply@blogger.comtag:blogger.com,1999:blog-6185259769000183348.post-4303274530970310762008-07-30T16:58:06.995-07:002008-07-30T16:58:06.995-07:00I would not call 33% a low tax bracket.<BR/><BR/>I would call it low only relative to what I think the future holds for MY tax rate because of my future success and future social policy.DogAteMyFinanceshttp://www.blogger.com/profile/02571124283388079010noreply@blogger.comtag:blogger.com,1999:blog-6185259769000183348.post-20749743862248902942008-07-30T16:18:37.884-07:002008-07-30T16:18:37.884-07:00Having a Roth makes it possible to have more money than other taxpayers AND enjoy a lower tax rate than the suckers who don't have as much money as you.<BR/><BR/>Is this a great country or what?Anonymousnoreply@blogger.com