The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: Roth 401k vs. Traditional 401k||Date: 9/28/2012 12:37 PM|
|Author: ptheland||Number: 70987 of 78166|
Tax rates, despite what the Republicans are telling you, are at a 50-year LOW. With our yen for spending and our deficit there ain't no where for these rates to go but up.
I generally agree with this part.
I sleep better at night knowing that's not yet another unknown I must factor for when planning my retirement.
The problem here is that what matters for the Roth vs. traditional decision is your personal tax rate, not overall tax rates in general.
Some people have high incomes but got a very late start on retirement savings. For them, a traditional might make sense. They're in a high bracket now, but even if tax rates move up, they could easily be in a lower tax bracket in retirement.
Generally, I suggest a balanced approach. Get