New Job, 1st 401K..Questions

This is what I can see.

Contribution Amount


BEFORE TAX SAVINGS
Current Election 0 %
Desired Election %
(2% to 25% in increments of 1%)




ROTH BASIC
Current Election 6 %
Desired Election %
(2% to 25% in increments of 1%)

Pre-tax and Roth Subtotal
Current Election 6 %
Desired Election %


NEW START AFTER TAX
Current Election 0 %
Desired Election %
(1% to 25% in increments of 1%)

After-tax Subtotal
Current Election 0 %
Desired Election %


Contribution Amount Total
Current Election 6 %
Desired Election %
(2% to 25%)





Your changes will generally take effect in 1 to 2 pay periods depending upon when your employer makes your requested payroll change.

quote:

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do you have the option of both a standard 401K and a Roth 401K?

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Why would you want this?

The employer contributions into the Roth 401k is pretax like a standard 401k

So you get both in one within a Roth.

Im saying its rather complex and highly individualized.

If you think that you will be paying a higher tax rate in retirement than you are paying now, then the Roth 401k is a godsend.

It is good for diversifying your tax exposure though either way.

Remember, you are paying 25% on the money you are contributing to the Roth, vs being able to deduct that money by contributing to the traditional 401k.

I am personally a big fan of Roths...but that is me.