Menu
Home
Advertise
Forums
Search forums
What's new
Unread posts
Latest activity
Earn Money
Review Website/Apps
Passive Income
Money apps
Paid Survey
Stock
Forex
Real estate
Paid to write
Social Media Monetization
Crytocurrency
Bitcoin (BTC)
Ethereum (ETH)
Crypto Exchange
Mining
Crypto Faucet / Airdrops
Binance
Business
Business strategy
Funding a business
Marketing
Digital Marketing
Social media marketing
Email marketing
Brand management
Personal Finance
Money Saving
Personal loan
Retirement
Debt help
Savings for Students
Tax relief
Insurance
Car Insurance
Life Insurance
Liability Insurance
Home Insurance
Health Insurance
Disability Insurance
FAQ
Log in
Register
What's new
Search
Search
Search titles only
By:
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Money Making Forums
Make Money Online
Stock
How to Choose Between a Roth and Traditional 401k?
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
[QUOTE="Yusra3, post: 285647, member: 31907"] When deciding between a Roth and traditional 401k, it's important to consider your current and future tax situation. If you think you'll be in a higher tax bracket when you retire, then a Roth 401k may be the better choice. With a Roth 401k, you pay taxes on the money you contribute now, but all withdrawals are tax-free in retirement. On the other hand, if you think you'll be in a lower tax bracket when you retire, then a traditional 401k may be the better choice. With a traditional 401k, you don't pay taxes on the money you contribute now, but all withdrawals are taxed as ordinary income in retirement. [B]Consider Your Current Savings Goals[/B] Another factor to consider when choosing between a Roth and traditional 401k is your current savings goals. If you're trying to save for retirement as quickly as possible, then a traditional 401k may be the better choice. This is because traditional 401ks offer up to a $19,500 contribution limit (or $26,000 for those age 50 or older), whereas Roth 401ks only offer up to a $6,000 contribution limit (or $7,000 for those age 50 or older). However, if you're trying to save for other goals in addition to retirement (e.g., buying a home), then a Roth 401k may be the better choice. This is because contributions to a Roth 401k can be withdrawn at any time without penalty, whereas withdrawals from a traditional 401k before age 59 1/2 are subject to both taxes and penalties. [B]Get Professional Help If You Need It[/B] If you're still not sure whether a Roth or traditional 401k is right for you, it's always best to get professional help from a financial advisor or tax professional before making any decisions. They can help assess your individual financial situation and advise you on which type of account would be best for your needs. [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
Money Making Forums
Make Money Online
Stock
How to Choose Between a Roth and Traditional 401k?
Top