regarding normal 401k vs. roth 401k -- Psualum Forum

[ Show ]

Support VoyForums

[ Shrink ]

VoyForums Announcement: Programming and providing support for this service has been a labor of love since 1997. We are one of the few services online who values our users' privacy, and have never sold your information. We have even fought hard to defend your privacy in legal cases; however, we've done it with almost no financial support -- paying out of pocket to continue providing the service. Due to the issues imposed on us by advertisers, we also stopped hosting most ads on the forums many years ago. We hope you appreciate our efforts.

Show your support by donating any amount. (Note: We are still technically a for-profit company, so your contribution is not tax-deductible.) PayPal Acct: Feedback:

Donate to VoyForums (PayPal):

[ Login ] [ Contact Forum Admin ] [ Main index ] [ Post a new message ] [ Search | Check update time | Archives: 1, 2, 3, 4, [5], 6, 7, 8, 9, 10 ]

Subject: regarding normal 401k vs. roth 401k

Author:
Donnie

[ Next Thread | Previous Thread | Next Message | Previous Message ]

Date Posted: 15:15:46 12/04/12 Tue

My company also offers both types of 401ks.

I just contribute to the normal 401k and do not use the roth 401k.

When making your decision factor in this ...

"If you expect your tax rate to be the same or higher in retirement than it is now, you might be better off with a Roth 401(k). This is likely to be the case with young people who are just starting their careers and expect their income to increase in the future. "For folks who are in the 15% or 25% tax bracket, it may not be a bad idea to pay those taxes now and never have to worry about what tax brackets might become in the future," says Kitces. If you're in your peak earning years, on the other hand, and you figure your tax bracket will be lower in retirement, you'll benefit from continuing with traditional 401(k) contributions."

(see http://www.smartmoney.com/retirement/planning/understanding-the-roth-401k-17679/)

[ Next Thread | Previous Thread | Next Message | Previous Message ]