I have checked on line, but d not get the 100% answer I want to know for doing the tax....(why must the market make so many confusing things, why not make more distinct names??)
I never do any special things outside what my company offers. So, the the 401(K) plan that is offered by my employer, what KIND of 401(k) is it considered?
I know what is ROTH IRA and I do not have it. I see the words: traditional 401(K) and roth 401(K) in the market and in Turbotx software......... now I am confused. Is the traditional 401(K) the same as the regular 401(K) in the old days? or are they different? And foe my case, since I never open any additional accounts outside what my employer offers, I can just ignore any questions relates to ROTH 401(K) and ROTH IRA, correct?
Yes, the traditional 401(k) is the regular 401 (k) from the old days and usually contributions are from pre-taxed money at work. Yes, if you do not have any Roth 401(k) or Roth IRA then you can ignore these questions / answer that you do not have them.
The Roth 401 (k) is also offered by employers and contributions are made from after-tax money.
Both the regular 401(k) and Roth 401(k) contributions are on your W-2 in box 12 and you do not have to enter these contributions anywhere else.
Traditional IRA and Roth IRA are retirement accounts that you open outside of work with your bank. Please see IRS Retirement Topics - IRA Contribution Limits for more information.
Yes, the traditional 401(k) is the regular 401 (k) from the old days and usually contributions are from pre-taxed money at work. Yes, if you do not have any Roth 401(k) or Roth IRA then you can ignore these questions / answer that you do not have them.
The Roth 401 (k) is also offered by employers and contributions are made from after-tax money.
Both the regular 401(k) and Roth 401(k) contributions are on your W-2 in box 12 and you do not have to enter these contributions anywhere else.
Traditional IRA and Roth IRA are retirement accounts that you open outside of work with your bank. Please see IRS Retirement Topics - IRA Contribution Limits for more information.