Originally Posted by
m3113n1a1
This is false. It's beneficial for most, and especially younger pilots to do Roth contributions for several reasons. Two of the most important are that I think a lot of pilots with a significant time left at Delta will have the same or higher income in retirement as they do now. Second, being able to move your money into an IRA gives you many more options as far as investments. Third, tax rates in my opinion (guess) are probably going to be higher when we retire.
Having the option to defer taxes is great, but ONLY if it's an option. Honestly it might be worth it to give the DZ the money they're demanding just so they don't mess up our retirement plan with some kind of forced MBCBP.
Did you calculate lost investment value from money used to prepay your taxes.
Some people decide to prepay but don’t include the investment opportunity loss of the money they gave the government to do that.
I haven't seen math work out when the taxes used to prepay a Roth are instead invested while the money stays tax deferred.
Biggest problem with funding a Roth is it forces larger growth demands, mediocre returns, creates a mediocre balance which creates mediocre low taxes withdrawals.
It’s a tall order for someone in their 30s, or early 40s to already have a deferred balance so large it can generate 100-140k a year using 4% rule.
Total crapshoot if your prepaying taxes without a deferred balance already greater than 1-2 million.