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dixiegrrrrl

(60,154 posts)

33. Not just the rich.

Reply to Nye Bevan (Reply #12)

Wed Mar 25, 2015, 11:26 AM

Mar 2015

I had a Roth, with Vanguard, self directed, and at the time their minimal amount to open an account was maybe..200.00?
It has gone up, but still affordable to those who make more than min. wage.

the only caveat at the time was that you has to max out your annual 401-k contribution, the Roth was with "leftover" money.
And of course this was when jobs paid a decent salary.

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33 replies

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401K Cruel Joke On Workers. Taxed As Regular Income On Distribution. Not Part Of Capital Gains Rate [View all] TheMastersNemesis Mar 2015 OP

You're lucky they're actually letting you keep your 401K, taxed and all Wella Mar 2015 #1

dual rules Larry66 Mar 2015 #2

Are your comments geared at 401Ks in general or Senator Rubio's tax bill?? cbdo2007 Mar 2015 #3

In A Sense Both. TheMastersNemesis Mar 2015 #7

My 403(b) statement shows my contribution and my institution's contribution alcibiades_mystery Mar 2015 #4

The reason is that your 401k contributions come from pre-tax dollars, Nye Bevan Mar 2015 #10

AND there is a way to turn your 401-k into a Roth at some point. dixiegrrrrl Mar 2015 #32

We should demand that Congressional pensions be replaced with a 401k retirement plan! B Calm Mar 2015 #5

They already have a similar style fund madville Mar 2015 #23

Sure they got that too, but they also get a very nice pension after only 5 years in office! Like B Calm Mar 2015 #24

401Ks effectively provide a fully tax-free return, thanks to the deductibility of the contributions, Nye Bevan Mar 2015 #6

Saying that 401(k) contributions are "deductible" is a bit of a misnomer A HERETIC I AM Mar 2015 #8

The key point is that the after-tax cost to you of contributing $100 to a 401k is $70, Nye Bevan Mar 2015 #9

I was just going to edit my post when I saw you responded! A HERETIC I AM Mar 2015 #11

I would just add that all but the rich can open a Roth IRA, Nye Bevan Mar 2015 #12

This message was self-deleted by its author A HERETIC I AM Mar 2015 #13

Deleted above cause I can be too quick! A HERETIC I AM Mar 2015 #14

Not just the rich. dixiegrrrrl Mar 2015 #33

Buying one share of XYZ corporation for $70 lumberjack_jeff Mar 2015 #18

I'm not sure I follow. Nye Bevan Mar 2015 #19

You understand - despite my poorly worded post. lumberjack_jeff Mar 2015 #21

Moreover, rogerashton Mar 2015 #27

Leona Helmsley was right - it's the little people that pay the big taxes. bullwinkle428 Mar 2015 #15

Absolutely true and terribly unfair! n/t Still Sensible Mar 2015 #16

Just another way for thieves and liars to get their hands on money they don't work for. n/t jtuck004 Mar 2015 #17

Another thread in which some DUers pass up the opportunity to learn something onenote Mar 2015 #20

that is because a 401K is funded with PRE-tax income, same as an IRA magical thyme Mar 2015 #22

Thanks for the information. Vinca Mar 2015 #25

and if taken early you are charged a fee, even if you are unemployed, and the 401k is audited Demonaut Mar 2015 #26

And more of us who are losing our savings when unemployed are forced to cash them in now too.. cascadiance Mar 2015 #31

401Ks RobinA Mar 2015 #28

There needs to be more flexibility for 401s BeyondGeography Mar 2015 #29

But the initial investment wasn't taxed. Yo_Mama Mar 2015 #30