So a little backstory to hopefully get the best help here. I don't pretend to understand as much as I would like when it comes to investments and such but am hoping for some insight from one of you so that I can potentially avoid a simple mistake that could end up screwing me way down the line. Out of college I started working for a fairly large GC that I set up a 401K plan through. All contributions were taken out of my paycheck and pre-taxed to my understanding, which would then be taxed when I withdrew. Everything was great with but now fast forward a couple of years and I am now working for a smaller subcontractor that does not offer a company based 401K plan. I have since moved the money to a personal ML account that has in large part just been sitting there.
I am making considerably more than I was back then and have spent the last several years knocking down my student debt and other things as much as possible while largely ignoring my retirement account. I am in a position now where I can start contributing again like I should but I am concerned about the tax laws on these different account types.
My fear is that since my contributions will be in theory taxed from my paycheck right off the bat, I will essentially be getting taxed at that point and then again when I eventually withdraw for retirement? Is a Roth IRA the way to go in my situation?
Thanks in advance for any input.
I am making considerably more than I was back then and have spent the last several years knocking down my student debt and other things as much as possible while largely ignoring my retirement account. I am in a position now where I can start contributing again like I should but I am concerned about the tax laws on these different account types.
My fear is that since my contributions will be in theory taxed from my paycheck right off the bat, I will essentially be getting taxed at that point and then again when I eventually withdraw for retirement? Is a Roth IRA the way to go in my situation?
Thanks in advance for any input.