31.5k - 18k = 13.5k - 5.5k = 8k

tax rate for single, under 190k is 28% (my guess at the tax bracket he's in, though max is 39.6%, so it doesnt matter for my point). that is a bulk of taxes, obv there are others, but fed is the majority

there is no possible way that on 5.5k someone is paying 8k in taxes, that's 59% taxed.

i'm sure there is a reasonable explanation, i'm just curious and couldnt figure it out myself

Oh it's just a back door Roth deposit

My accountant told me about that earlier this year

The taxable amount is $31k, because the Roth 401(k) is after-tax too. If you make $31k and pay $8k in taxes, you will have $23k left for 401(k)/IRA. That's a 26% rate, which is probably a reasonable average rate (7.5% payroll taxes + just under 20% income taxes).

gotcha, didnt realize a roth 401k was post tax also.

The goal of poker should be to die face down in a pile of blow on the hooker's ass... ain't nobody got time for retirement.

^ Yah bob nailed it, it's all after-tax money in the retirement accounts (except for company match which is matched with pretax dollars). Tax free compound interest over 30-40 years is such a ridiculous concept I can't even believe it's a real thing.

Tax free compound interest in a Roth IRA which can be invested in a variety of asset classes not available in a 401k (individual stocks, commodities, real estate, derivative ETF's/ETN's) is even more outrageous.

A lot of (conspiracy) people believe the government will just start appropriating Roth funds or adding some kind of VAT surcharge in the future when U.S. budget problems are even worse than they are now. But I'll cross that bridge when I get there.

Bob was also right that you can convert an existing IRA to a Roth IRA. For people that want more flexibility, you can roll over your 401k into an IRA and then convert that IRA to a Roth IRA (pay tax now), but now you have your entire 401k balance in a tax-sheltered account that can compound tax free for 30-40 years. When I eventually quit my current job I am going to roll everything over to my Roth IRA and convert whatever pretax portion I have to post-tax.

Then you take advantage of silly stupid things like backing the truck up into Apple stock during the last recession/crash (2008-2009) and binking 800% returns tax free.

I believe this! The only real advantage of a Roth is that you can effectively contribute more (because you can stash away after-tax rather than pre-tax dollars, which are worth more), but you're subject to a risk of paying some kind of direct (unlikely) or indirect tax burden down the road. And the advantage of tax-free compounding is nice in theory, but there should be a large percentage of your portfolio (basically non-REIT equities) that can live in taxable accounts with minimal tax drag (especially if you are good about harvesting losses). All told, there's a good case to be made for taking the upfront tax benefit.

The real tax hack is HSAs. Tax-deductible contributions, no tax on earnings, and no tax on withdrawal if used for healthcare expenditures. And the kicker is that you can "bank" healthcare expenditures indefinitely, so you can basically just use the HSA as a retirement account, then withdraw all the unreimbursed medical expenses your or your family have ever had tax-free.

i'm a little ignorant on this:

-how does one convert their current 401k to a roth 401k?

-do you just pay the min into your traditional 401k to get the match and then put the rest into a roth 401k run by a 3rd party site (like td ameritrade) or is that something you do through your company?

my buddy works for a very large heath insurance company. he raves about HSAs. when he looked over my new jobs benefits for me, he suggested i take the HSA, for basically this reason. wifey is a little more risk adverse, so she wasnt game for that, especially because we were gonna try to have a 2nd kid soon after that, but i def saw the point you and my buddy were making

You can't convert your pretax 401k dollars into Roth dollars in your existing 401k, but you may have the option to simply change your contributions from pretax (non-Roth) to post-tax (Roth). Not all plans offer a Roth component, however. You can still get the company match (non-Roth) by contributing after-tax Roth dollars.

I haven't had to do it yet, but I believe the best/easiest time to transfer is when you leave your current job. Once you are no longer employed with your company you have the option of rolling a 401k over into an IRA. That is also the time you can do a Roth conversion where you pay taxes on the pretax amount and are left with an already-taxed, extremely flexible Roth IRA.

finally the voice of reason.

At the ~1,800 hr mark of 1/3 NL, I hadn't officially booked a 500bb downswing (although close twice).

Now at the ~2,450 hr mark, and I've since booked ~950bb and ~770bb downswings.

Gjustonemansresults,8.3bb/hrwinneroverall,but****canhappen,andfastG

Pfffttt... try 1600bb on for size at the 2Khr mark (but, I'm slowly climbing back out of the hole).

Is that my graph?

It looks like my graph. Total garbage in 2015.

Nothing like a ~500 breakeven stretch after crushing the game for 2K hours. Just keep the faith, good luck.

G3bb/hrwinnerover421hoursin2015,canwealljustagreetogett hisyearoverwith?G

Currently on a 1200bb downswing

Fish on heater, should be 1600bb downswing but you've gotten lucky?

Git'sofficial,we'vedecidedtocanceltherestof2015,am irite?G

Downswings are definitely sustainable.

lol

Got me a 4 session win streak after a 860BB downswong for me over just shy of 80 hours. At least 400BB of those losses at least are due to horrendous play by me.

DlooklikeageniuswhenyouflopgoodeveryhandCFT.

Mine has been a combination of epic run bad (see my location) as well as some new leaks that round their way into my game.

I think I've mostly plugged the leaks that I found and I'm running a little better.

Found a few leaks of my own as well. I noticed I was opening too much up front against sticky opponents with marginal hands.

Also been playing a lot of small ball in my no-fold-em games by opening up a ton IP and concentrating on good spots post. Read bip!'s PC&G and he hammered home "range" which I've been doing a lot more. It's opened my eyes to all sorts of thin value and bluff spots that I wouldn't have seen before.

An honest Tootie! I recently played a hand so horrendously that I was going to post it. Then I thought, no, they'd have way too much fun eating me alive with this one..... so I chickened out. Instead, I followed it up the next day with another hand that I played horrendously.

So decided to take another shot at our weekly 5/10 game as it was days before my 21st birthday. Made 3k, then on Saturday beat the 2/5 game for a 5k score. Pretty huge week for me, especially since I can now go to any casino. Got a new phone so I have to backup my data from before and I'll update my results.

I posted a 500 hour update to winrate and graph, so here's a 600 hour update. This is only 1/2 and 1/3 with nothing else filtered out, no sessions excluded.



Currently on an 11 session, $7400 win streak, which is obviously ridiculous.

Nice start, Donkey!

GjellyG