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emmyloo22 OP t1_j2cvt04 wrote

Reply to comment by Cheaper2000 in Please help — I don’t understand my pension… can somebody ELI5?? by emmyloo22

Okay, yeah, that stinks a little! Was hoping to put it in the 401(a) and just let it do its thing lol. Would you recommend a Roth or Traditional IRA? I don’t feel like my salary will get much higher than it is now tbh. I really lucked out with this last promotion — I think I’ve already hit a lofty ceiling for my line of work.

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Cheaper2000 t1_j2cw5sc wrote

Roth if you’re under 30. Give it a few years to make the call on whether or not you’ll make more in retirement and then switch to traditional if appropriate. Plus it allows you to contribute “more” since you paid the taxes already (6500 post tax>6500 pre tax).

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emmyloo22 OP t1_j2cwapr wrote

Points taken! You’re killing it with the advice, man. :) Thanks a billion.

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