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Politics : President Barack Obama

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To: manalagi who wrote (19805)5/1/2008 10:55:22 AM
From: RetiredNow  Read Replies (2) of 149317
 
That's correct. If you put in $100 of pretax money into a 401K, then all is subject to ordinary income tax upon withdrawal. If you put $100 in aftertax money into a Roth, then only the earnings on that $100 is subject to tax.

If you have taxable account money, then you've already paid ordinary income tax and then you pay cap gains tax on the earnings.
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