Roth ira

The examples below illustrate that the tax liabilities of comparable 401k and Roth IRA contributions are equivalent. In general, the 401k contribution is made in pre-tax dollars, and while you pay taxes on the value of the account at withdrawal, you are essentially only paying taxes on the contributions – earnings are effectively tax-free. A Roth contribution is made in after-tax dollars – you pay taxes on the contribution up-front, and its earnings are also tax-free. The key to comparing after-tax returns on a 401k investment to a Roth is to be sure that the contributions you are comparing involve the same amount of pre-tax income. 401k plan, roth ira, after tax, tax rate, roth ira contribution Read More »

Start with a Budget No matter how sophisticated you think you are about your finances, don't pass up the opportunity to set a basic financial budget for your new life. Read More »

Stop saving for even a few months and it can be tough to get back into the habit, and it can be even tougher to make up for the lost contributions. "Even when you get a new job, it's easy to tell yourself you can't afford to contribute right away, or to contribute much, and then you'll really fall behind," says certified financial planner Annie McQuilken, founder of Kintyre Financial Advisors in Lexington, Mass.