Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Personal Finance
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 3 years ago on . Most recent reply

User Stats

17
Posts
3
Votes
Tom Seigold
3
Votes |
17
Posts

401k: should I do Roth or traditional in this case?

Tom Seigold
Posted

- Income ~$170k, effective income tax rate is about 27% right now.  Employer offers full 401k match up to 3%, so I'm putting in 3% to get the full match.

- Retiring in about 30-35 years.

- Building a rental portfolio is my goal, like many here.  I'm saving for my first rental now and doing as much research as I can beforehand.  I have roughly $40k/year budgeted right now to spend on down payments, and will be reinvesting whatever my properties make.

I know the typical advice is "go Roth if you plan to make more when you retire than you're making now" - which I do plan to happen, absolutely.

But does that advice change at all when the income you earn is going to be rental income?  I have not claimed rental income on a tax form yet, so I'm not sure how it gets taxed.

Loading replies...