Bottom line, 401k and traditional IRA's are pre-tax contributions that get taxed as you withdraw money during retirement. The idea is that at that point your taxable income is lower so the withdrawals are taxed at lower rates. Roth IRA's are after-tax contributions with no tax paid as you withdraw during retirement. At some point, Uncle Sam will extract his pound of flesh!
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2021 X3 M40i
1974 2002tii, Inka, 5 sp manual
BMWCCA # 327475
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