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Jill on Money with Jill Schlesinger

Coronavirus: Pre-tax or Roth

Jill on Money with Jill Schlesinger

Audacy

Self-improvement, Business, Investing, Education

4.61.8K Ratings

🗓️ 15 June 2020

⏱️ 11 minutes

🧾️ Download transcript

Summary

Yes, very likely the most popular question on the show: is it better to be making pre-tax or post-tax contributions into my retirement plan at work? Have a money question? Email me here. Please leave us a rating or review in Apple Podcasts. "Jill on Money" theme music is by Joel Goodman, www.joelgoodman.com. To learn more about listener data and our privacy practices visit: https://www.audacyinc.com/privacy-policy Learn more about your ad choices. Visit https://podcastchoices.com/adchoices

Transcript

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0:00.0

Welcome to the Jill on Money Coronavirus Market Update. It is Monday, June 15th, and welcome to your work week which may look a lot like your weekend.

0:16.7

I've been hearing people talk about how they just lose all sense of time during this period.

0:21.6

It's so true. Especially if you're someone who is lucky enough to be working from home, it does feel like you're working constantly. Do try to take some time off. Mark and I have been much better about that that we're trying to take some time every weekend just to kind of nest a little bit with our loved ones and we encourage you to do the same thing.

0:42.6

So we are trying to help you out through this crazy time.

0:46.4

And what we want to encourage everybody to do

0:49.1

is to send us your questions.

0:51.2

Our email address is Ask Jill at Jill on money.com.

0:55.3

Ask Jill at Jill on money.

0:58.6

Okay, Enrique writes. Hi Jill, Daily podcaster here. I love it. I have a question about my

1:05.0

457 pre-tax or Roth. Okay, here's the background. I've gotten into retirement

1:11.3

saving over the past few years. I've read your book. I max out my

1:14.8

457 pre-tax. I put six grand in a Merrill Roth IRA and I also invest through a regular taxable brokerage account.

1:24.0

I'm the go-to guy for my firehouse retirement savings advice.

1:28.0

It's hysterical, so he's a 41-year-old firefighter.

1:31.0

Question here.

1:32.0

Okay, I'm in the 32% tax bracket plus 5% state.

1:37.6

Meaning he means that's his maximum tax bracket. I figured by doing 19,500 pre-tax, it saves me enough taxes to then do six grand to my Roth.

1:48.0

Does it make sense to do my Roth for my 457?

1:51.8

I've got 15 years to go and my pension will probably be 100 grand a year

1:58.8

You know it's funny what Mark when we had Goodman on you know he still has some

2:05.0

questions about whether it should be all Roth all the time but I think in

2:10.3

this case it's interesting that he's in such a high tax bracket. I don't know if he's single or married, but just to remind you,

...

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