In the video I also stress-test it: What if taxes skyrocket?
Except as noted in the video, tax estimates discussed in the video use 2024 federal income tax brackets and deductions.
I've dispel myths about traditional retirement accounts on my blog: and
Here an advisor colloquially says the IRS might get 60 or 70 percent of a traditional retirement account
This advisor colloquially says that right now the government gets 38% or 39% of traditional retirement accounts:
Interestingly enough, UBS and Credit Suisse came out last summer with a report on global wealth.
On page 16 the report claims that the median American adult has about $108,000 of wealth. Thus, most Americans are not in a position where they can afford to comfortably retire. This has two significant implications in the traditional 401(k) versus Roth 401(k) debate. First, it means most Americans will have a very low effective tax rate in retirement, since they are so low in financial resources. Second, it means most Americans need to prioritize sufficiency concerns when it comes to retirement. Often, the best way to do that is to contribute to a traditional deductible 401(k) at work and invest the tax savings at home in a Roth IRA or taxable brokerage account.
This video, the show notes, and any comments are for educational purposes only. They do not constitute tax, legal, financial, and/or investment advice for any person. Consult with your own advisors regarding your own matters.
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By: Sean Mullaney
Title: Taxes Will Crush This $3M Traditional IRA!!! Or Maybe Not
Sourced From: www.youtube.com/watch?v=DfuUPLkHbYU
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Did you miss our previous article...
https://trendingintaxation.com/videos/when-to-file-a-federal-estate-tax-return-after-married-person-dies
