The Motley Fool Discussion Boards

Previous Page

Financial Planning / Foolish 401(k)s


Subject:  Re: Roth 401k Uncertainty Date:  11/3/2018  5:44 PM
Author:  danbobtx Number:  26164 of 26301


At what I expect your total household income is, your top federal income tax rate is 15% + 6.2% for social security. So the difference in tax liability (not including state income taxes) is roughly $212 for each $1000 put into the Roth 401k rather than the traditional 401k.

Check the calculator here to see what the tax cut does for your family:

So the questions I have would be this:

Is the employer match on the entire amount contributed to the 401k or is it capped? That might influence my thinking a little bit.

Does the 401k allow for an in service rollover of the employer match into the Roth 401k?

Does the 401k plan allow for adjusting the relative contribution between the traditional 401k or Roth 401k during the year?

What I personally have done is slowly ramp up 401k contributions and proportionally decrease traditional contributions. This has kept take home pay fairly consistent over the past 2 years or so and increased the Roth pretty substantially. I'm looking into a rollover of pretax amounts into the Roth 401k, and will likely do that next year.
Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us