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L YACOUBA DAMBINA

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Sunday 18 August 2024 22:18:49 GMT

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Same same, but different! Most companies offer a 401(k) that includes both a traditional and Roth option, but it can be a little confusing! The main difference between the two is simply WHEN you pay taxes. Uncle Sam ALWAYS gets a piece of his pie, it’s just a matter of when you want (?…lol) to give it to him. If you desperately need to reduce your taxable income today, then traditional will be your bestie. When you go to withdraw the money, whatever tax bracket you’re in then, you will pay that tax rate on any money you withdraw. However, if you’re OK to pay your taxes now, then you won’t pay any taxes later when you withdraw the money— this includes the growth of the money! If you feel so stuck and don’t know which to pick, it’s also okay to do both! You can’t go over the total limit, but you can put money into both Roth and traditional. Remember that investing is better than not investing at all, so don’t get so hung up on not knowing which option to choose that you don’t end up doing anything! TELL ME: Are you team Roth, traditional or both?! 👉🏽👉🏽And remember sharing is caring because we want rich friends too! Share with a friend and follow mev for all the financial literacy tips and tricks and money motivation!

Same same, but different! Most companies offer a 401(k) that includes both a traditional and Roth option, but it can be a little confusing! The main difference between the two is simply WHEN you pay taxes. Uncle Sam ALWAYS gets a piece of his pie, it’s just a matter of when you want (?…lol) to give it to him. If you desperately need to reduce your taxable income today, then traditional will be your bestie. When you go to withdraw the money, whatever tax bracket you’re in then, you will pay that tax rate on any money you withdraw. However, if you’re OK to pay your taxes now, then you won’t pay any taxes later when you withdraw the money— this includes the growth of the money! If you feel so stuck and don’t know which to pick, it’s also okay to do both! You can’t go over the total limit, but you can put money into both Roth and traditional. Remember that investing is better than not investing at all, so don’t get so hung up on not knowing which option to choose that you don’t end up doing anything! TELL ME: Are you team Roth, traditional or both?! 👉🏽👉🏽And remember sharing is caring because we want rich friends too! Share with a friend and follow mev for all the financial literacy tips and tricks and money motivation!

🥲🤧😂😂😂😂#funyy_videos #funyy #foruyoupageoficiall #fypppppppppppppppppp

🥲🤧😂😂😂😂#funyy_videos #funyy #foruyoupageoficiall #fypppppppppppppppppp

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