回复lumao的评论:
That's right. So for those people with low income, it makes more sense to contribute to Roth IRA or Roth 401k instead of their traditional versions, unless you believe that Uncle Sam would be nice enough to low your tax rate when you get retired.
lumao 发表评论于
if your income is low when you withdraw the 401k, the income tax will be less?
挨踢的轱轳 发表评论于
Some friend asked if this rule applies to the balance rolled over from the 401k account(s) with previous employer(s). And he actually checked with IRS and the answer is yes, it applies to the whole account balance including what was rolled over. Thanks! Anything related to $$ and IRS is kind of complicated and I do not intend to cover all aspects of a topic. My purpose is to bring up the subjects so that others may get to know them. Those who are interested in more details can check out the following links:
http://www.irs.gov/taxtopics/tc558.html
http://www.irs.gov/pub/irs-pdf/p575.pdf (page31&35)