Help! The Gov't wants my money!!
and I don't think they're going to spend it wisely.
Hi All. Thanks for taking the time to read this drivel. I am a married 39 yr old with a new consulting business and am looking for a retirement strategy. Getting a very late start, so I want to be aggressive.
I am wondering about Roth 401k plans vs. tradditional 401k plans. My question: The $$ contributed ($15.5k) from my salary ($120k) will enter the Roth 401k as AFTER tax dollars. Will the profit sharing portion ($30k) enter the Roth 401k as PRE tax dollars? If so, how is that tracked for 'tax free disbursement' after retirement? If not, I guess I have to decide which type of 401K plan I want. Or maybe even a SEP. So far, I am leaning heavily to a 401k...
Or am I completely clueless? Actually, don't answer that.
I am wondering if I can create tax liability diversification within one retirement account. If not, am I simply better off with a 'standard' solo401K?
My company will generate about $165k / yr. I plan to take $120k as salary so that I can take full advantage of (Roth)401k plan. The other $45k or so will pay 7.5% SS tax, bills, etc. Am I barking up the right tree? Or am I way off base?