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Financial Planning / Foolish 401(k)s


Subject:  Re: Switch From a Roth 401k to a Traditional 401 Date:  12/23/2012  1:32 PM
Author:  pauleckler Number:  24974 of 26295

I agree with Fuskie, but to elaborate a bit . . .

Who knows what the tax code will look like say 30 years from now or what rates will be, but for now, 28% is a pretty low tax rate. 15% is possible, but that is unlikely for retirees like you who begin saving early in their careers. 25% is about the best you can hope for.

I would continue the Roth contributions while you are in the 28% bracket. If your tax rate rises above 30% perhaps you will want to review your situation.

And don't forget the impact of state and local income taxes.
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