The Benefits of the Roth 401(k)

Discussion in '401k, IRA and Retirement' started by admin, Jul 1, 2014.

  1. JR Ewing

    JR Ewing Super Moderator Staff Member

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    If you're in a high tax bracket now and expect to be in a lower tax bracket in your 60's and 70's, a traditional 401k might be better. But since you're younger, you probably haven't reached your peak earning years by a long shot. A Roth 401k may be better to start now. You can always start splitting up your annual max contribution between the Roth and a separate traditional 401k when you're older and making more money and likely paying far more in taxes. You may even eventually want to just contribute annual contributions to a traditional 401k at some point. But a Roth may be better now.
     
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