ROTH 401k or 401k or both?

Status
Not open for further replies.

Zombie

Platinum Member
Dec 8, 1999
2,359
1
71
Employer has started to offer roth401k. They match up to 7% (dollar/dollar) and I believe both roth and regular 401k get the match.

so which one do you do? I am leaning towards doing 50/50 since earnings on roth are tax free.
 

spidey07

No Lifer
Aug 4, 2000
65,469
5
76
Do you see your taxes being higher or lower than now when you retire? What kind of options do you have with the 401k, are you happy with your selection and it's performance?
 

duragezic

Lifer
Oct 11, 1999
11,234
4
81
I went 100% towards Roth 401k. I expect that when I retire I will be in a higher tax bracket and that income taxes overall will be higher, so I went with the Roth 401k.
 

Elbryn

Golden Member
Sep 30, 2000
1,213
0
0
Roth. i dont think there's anyone out there that thinks taxes will not be raised in the future to help cover costs. see trillion dollar bailouts, see every state not having enough money to balance a budget, see local city's all adding levies and proposing city tax raises. stuff as much into those taxed accounts as you can while the tax rates are low and hope to god that they dont think of a way to tax the roth ira/roth 401k
 

Engineer

Elite Member
Oct 9, 1999
39,234
701
126
Originally posted by: duragezic
I went 100% towards Roth 401k. I expect that when I retire I will be in a higher tax bracket and that income taxes overall will be higher, so I went with the Roth 401k.

I just hope that you (and I ) have gains that made it worth it. Looking at my 15 years of contributions to a 401k plan and 6 years to a Roth and having negative gains on both at the end of March (not sure now about the 401k right now but Roth is still down 25% for the 6 year period)....makes you pretty damn sad.
 

Engineer

Elite Member
Oct 9, 1999
39,234
701
126
Originally posted by: Elbryn
Roth. i dont think there's anyone out there that thinks taxes will not be raised in the future to help cover costs. see trillion dollar bailouts, see every state not having enough money to balance a budget, see local city's all adding levies and proposing city tax raises. stuff as much into those taxed accounts as you can while the tax rates are low and hope to god that they dont think of a way to tax the roth ira/roth 401k

You mean replacing the income tax with a national sales tax? :shocked:
 

mshan

Diamond Member
Nov 16, 2004
7,868
0
71
When Carmen Wong Ulrich's "On The Money" was on weekdays on CNBC, she and her guests used to say that it was a toss-up over the long term, but that you never know how government will change the rules down the road.

General recommendation was to put money in Roth if you are just starting out and anticipate higher earnings power going forward, but later on (when income has stabilized) use standard tax deductible 401k because you just don't know what Congress will do when they need to find more money (just like Elbryn mentions above)



edit: one other thing to research before you make your decision is what specific mutual fund options you have in your 401k. During the panic of last fall and early this year, basically everything was on sale, irrespective of quality of company or stock. Many value and contrarian growth mutual fund investors were able to load up on really high quality companies and place their bets, so to speak, for the next 5 years. Even though many of these funds have already run up 20% this year, there still may be a lot of latent value to be released over at least a 5 year time horizon (when economy has truly recovered and started to grow steadily again). Check out most recent quarterly reports (second quarter commentary may have just been released and may or may not be on websites yet) for your mutual funds and see what they say about anticipated returns going forward. You can also get Morningstar analysis with premium membership (I think there is a 30 free trial available). If all of your mutual fund choices are poor, perhaps paying taxes now makes sense; if you have high quality choices with say 20% per annum potential anticipated returns over next 5 years (as some fund letters were projecting during first quarter of this year or end of last year - I forgot where I read that, but I think I read it in at least two different mutual fund quarterly reports), deferring taxes and deploying that saved money into more 401k mutual fund shares may make more sense. Good luck!
 
Status
Not open for further replies.
sale-70-410-exam    | Exam-200-125-pdf    | we-sale-70-410-exam    | hot-sale-70-410-exam    | Latest-exam-700-603-Dumps    | Dumps-98-363-exams-date    | Certs-200-125-date    | Dumps-300-075-exams-date    | hot-sale-book-C8010-726-book    | Hot-Sale-200-310-Exam    | Exam-Description-200-310-dumps?    | hot-sale-book-200-125-book    | Latest-Updated-300-209-Exam    | Dumps-210-260-exams-date    | Download-200-125-Exam-PDF    | Exam-Description-300-101-dumps    | Certs-300-101-date    | Hot-Sale-300-075-Exam    | Latest-exam-200-125-Dumps    | Exam-Description-200-125-dumps    | Latest-Updated-300-075-Exam    | hot-sale-book-210-260-book    | Dumps-200-901-exams-date    | Certs-200-901-date    | Latest-exam-1Z0-062-Dumps    | Hot-Sale-1Z0-062-Exam    | Certs-CSSLP-date    | 100%-Pass-70-383-Exams    | Latest-JN0-360-real-exam-questions    | 100%-Pass-4A0-100-Real-Exam-Questions    | Dumps-300-135-exams-date    | Passed-200-105-Tech-Exams    | Latest-Updated-200-310-Exam    | Download-300-070-Exam-PDF    | Hot-Sale-JN0-360-Exam    | 100%-Pass-JN0-360-Exams    | 100%-Pass-JN0-360-Real-Exam-Questions    | Dumps-JN0-360-exams-date    | Exam-Description-1Z0-876-dumps    | Latest-exam-1Z0-876-Dumps    | Dumps-HPE0-Y53-exams-date    | 2017-Latest-HPE0-Y53-Exam    | 100%-Pass-HPE0-Y53-Real-Exam-Questions    | Pass-4A0-100-Exam    | Latest-4A0-100-Questions    | Dumps-98-365-exams-date    | 2017-Latest-98-365-Exam    | 100%-Pass-VCS-254-Exams    | 2017-Latest-VCS-273-Exam    | Dumps-200-355-exams-date    | 2017-Latest-300-320-Exam    | Pass-300-101-Exam    | 100%-Pass-300-115-Exams    |
http://www.portvapes.co.uk/    | http://www.portvapes.co.uk/    |