Not exact matches
The «real - world» bonus here is that those who invest the «
same dollar amount» into a Roth IRA vs traditional will in fact be investing at a higher level, due to the higher amount needed to overcome the
after -
tax hit.
When you compare the
same dollar amount invested in an RRSP and a TFSA, the TFSA provides 21 % more total lifetime
after -
tax income to Isaac.
The ideal situation is to end up with the
same number of
dollars in a Roth IRA (where they are
after -
tax dollars) as you had in your traditional IRA (where they are pre-
tax dollars).
While the contribution limits are the «
same» in both cases, the Roth holds
after -
tax dollars and an
after -
tax dollar is worth more than a pre-
tax dollar.
I wish I had the foresight and understanding back then to do the
same, instead of spending my few
after -
tax dollars on some speculative stock investments in my fully - taxable account.....
Though more
dollars go in, because it's pre-
tax it has the
same effect on your
after -
tax spending
dollars.
If I understand correctly, you guys mean that you are repaying the 401K loan with
after -
tax earnings, thereby negating the favorable
tax treatment you originally received on the 401K contribution, plus you will be
taxed on those
same dollars when you withdraw those funds for retirement.