Row 22725

Row ID: 22725 | Dataset Entry | Axioma AXP Content Repository

Content Data

This page contains data entry 22725 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.

Yes, you had to earn only $50k pre-tax dollars to put the money in. But, you're being loaned $50k in *post-tax* dollars (the loan distribution itself is never taxed).

All the accounts balance out. There is no double-taxation.

In fact, there is a tax deferment — if your only goal was to have $50k cash available to you as quickly as possible, then saving the $50k pre-tax into a 401k and then borrowing it back would be "faster" than earning $65k gross.

Your other points are valid. The opportunity cost is even more significant considering that it's going to take you potentially longer to repay the loan, as the taxes slow you down.

The mistake is thinking that $1 in a 401k is the same thing as $1 in your bank account — the $1 in your bank is worth more, because the tax liability has already been accounted for.

FieldValue
text Yes, you had to earn only $50k pre-tax dollars to put the money in. But, you're being loaned $50k in *post-tax* dollars (the loan distribution itself is never taxed). All the accounts balance out. There is no double-taxation. In fact, there is a tax deferment — if your only goal was to have $50k cash available to you as quickly as possible, then saving the $50k pre-tax into a 401k and then borrowing it back would be "faster" than earning $65k gross. Your other points are valid. The opportuni…
label r/investing
dataType comment
communityName r/investing
datetime 2024-05-21
username_encoded Z0FBQUFBQm5Lak1Cb1o4cTFXUnNnbDZ3dWx1aUVyQ25VZ3RhcWFEc0FaNUR2d0dQMUR2Uk1kVFIwVE90ay1qeWIyN0loYXhNMElVMHpaT0FTck5fbDREMzhqekxoVVBNdWc9PQ==
url_encoded Z0FBQUFBQm5Lak9RTzRUWFV1b0g1bXpyTnppVWliVXFVT05YRk9xRGRHLW1SS21IZzhmbVNYaHF3UTBCVS1YbDdnSDFLWU1wSFdJekhIMWVKdXRTZG9oTExYa3ZSRkhqNzNnc1F5bkJER3hqcjF1WTEwQjE4LUhzTTUtWU5Zb2RyamVpSjFfWE1tMGgzTmYyTThGRS10NUZVU1JaTmVjOW5fSjNwTkRsM1VCX3JkSGxGNXgtS1cybkE3SGFvd3B1czNnclptSWdxMjZvUlVZaTZZRVJFTWlBNFctVzNqVVdtdz09

Raw Record

{
  "text": "Yes, you had to earn only $50k pre-tax dollars to put the money in. But, you're being loaned $50k in *post-tax* dollars (the loan distribution itself is never taxed). \n\nAll the accounts balance out. There is no double-taxation.\n\nIn fact, there is a tax deferment — if your only goal was to have $50k cash available to you as quickly as possible, then saving the $50k pre-tax into a 401k and then borrowing it back would be \"faster\" than earning $65k gross.\n\nYour other points are valid. The opportunity cost is even more significant considering that it's going to take you potentially longer to repay the loan, as the taxes slow you down.\n\nThe mistake is thinking that $1 in a 401k is the same thing as $1 in your bank account — the $1 in your bank is worth more, because the tax liability has already been accounted for.",
  "label": "r/investing",
  "dataType": "comment",
  "communityName": "r/investing",
  "datetime": "2024-05-21",
  "username_encoded": "Z0FBQUFBQm5Lak1Cb1o4cTFXUnNnbDZ3dWx1aUVyQ25VZ3RhcWFEc0FaNUR2d0dQMUR2Uk1kVFIwVE90ay1qeWIyN0loYXhNMElVMHpaT0FTck5fbDREMzhqekxoVVBNdWc9PQ==",
  "url_encoded": "Z0FBQUFBQm5Lak9RTzRUWFV1b0g1bXpyTnppVWliVXFVT05YRk9xRGRHLW1SS21IZzhmbVNYaHF3UTBCVS1YbDdnSDFLWU1wSFdJekhIMWVKdXRTZG9oTExYa3ZSRkhqNzNnc1F5bkJER3hqcjF1WTEwQjE4LUhzTTUtWU5Zb2RyamVpSjFfWE1tMGgzTmYyTThGRS10NUZVU1JaTmVjOW5fSjNwTkRsM1VCX3JkSGxGNXgtS1cybkE3SGFvd3B1czNnclptSWdxMjZvUlVZaTZZRVJFTWlBNFctVzNqVVdtdz09"
}

Entry Information