Guideline has been acquired by Gusto

Re:Guideline has been acquired by Gusto by xp84 on Monday November 03, 2025 @09:34PM (#45806890)

But wait. If I take pretax $1000 this year and put it in a Trad IRA and buy some stock, and in 20 years I retire and it’s worth $3000, then I should owe income tax on the $1000 and 15% capital gains on the $2000 gain. If I did the same to a Roth though, I’d pay tax on the $1000 now, so, it’s now $600, but in 20 years it’s $1800, and all of it tax free. (Forgive me if I’ve screwed that up) if I’m right then it kinda seems to depend not only on future tax rates (def a huge question mark) but also on how much the stock may appreciate, as if the stock has more than that modest appreciation the capital gains tax avoided could be huge.

I’m not claiming expert status so I’m happy to be set straight.

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Re:Guideline has been acquired by Gusto by raw_anon_1111 on Monday November 03, 2025 @09:39PM (#45806914)

You wouldn’t pay tax on the $1000 you put in a traditional IRA. It would be pretax.

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Re:Guideline has been acquired by Gusto by groundzeros2015 on Tuesday November 04, 2025 @01:20AM (#45807890)

Traditional IRA pretax deduction phases out with higher incomes. Backdoor roth does not

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Re:Guideline has been acquired by Gusto by aobdev on Monday November 03, 2025 @10:20PM (#45807141)

Sorry but you don't get to claim capital gains on retirement distributions, they are entirely taxed as ordinary income. If your tax rate later will be 40%, you get the exact same result: 3000-1200=1800.

If your tax rate will be lower in retirement, favor pre-tax contributions. If higher, favor after-tax. The trick is knowing what tax rates will be years (decades?) from now.

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