Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: Fuskie Big funky green star, 20000 posts Top Favorite Fools Old School Fool Ticker Guide SC1 Red Winner of the 2010 Rule Breakers Challenge Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25265  
Subject: Convert from Traditional 401k to Roth 401k? Date: 11/22/2013 11:01 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
I started with a new employer in July and enrolled in their 401k plan, the first to which I've had access in about 5 years. It's also the first time I've had access to a Roth 401k in addition to a Traditional 401k. At the time, I had thought that the company matching contribution, for which I will be eligible in January 2014, only applied to the Traditional 401k. But when reviewing benefits information for 2014, I learned that the matching contribution applied to the Roth as well.

By the end if the year, I will have made around $2000 in Traditional 401k contributions and I am about 20 years from retirement. My AGI will likely put me in a 25% tax bracket. So the question is, should I contact Fidelity (the plan administrator) about converting the account from a Traditional 401k to a Roth 401k? I am pretty sure the fund investment options are the same, and the added tax liability should be no more than $500. I figure if I am ever to do this, before the end of the year would be cleanest from an administrative perspective.

Fuskie
Who is also wondering if a Traditional company matching contribution is any more or less valuable than a Roth company matching contribution...
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Apple

Wal-Mart Nixes Apple Pay
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement