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re: Benefits of a Roth 401K vs a Traditional 401K?
Posted on 11/16/15 at 9:23 pm to TigerTatorTots
Posted on 11/16/15 at 9:23 pm to TigerTatorTots
Is the company going to offer you the same match on the Roth? Some do. Some don't.
All things equal, most advisors suggest a (not necessarily equal) balance between the two. As well as not knowing your income at retirement, you also have no way of knowing what the tax rates will be then. Having balanced contributions gives you the option of mixing tax free income with the taxable upon retirement. And right now, the traditional 401 contributions will be lowering your taxable income.
All things equal, most advisors suggest a (not necessarily equal) balance between the two. As well as not knowing your income at retirement, you also have no way of knowing what the tax rates will be then. Having balanced contributions gives you the option of mixing tax free income with the taxable upon retirement. And right now, the traditional 401 contributions will be lowering your taxable income.
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