My First Employer-Funded 401k: Roth/Traditional Split For 28% Bracket?
Age: 28
Income: ~$110,000
Filing Status: Single
Federal Tax Bracket: 28%
No State Income Tax
Emergency funds: Yes
Debt: $30,000 (Done by 3/2016)
I graduated in 2012, but I was essentially unemployed or underemployed for about 16 months during my first 2 years out of school, so only managed to put away in a Roth IRA during the first few years post-graduation. Right now, I am fortunate enough to be with a Fortune 50 company since October. This is my first 401k fund. My company has a Roth and Traditional 401k option. I intend to max my 401k, IRA and HSA every year from now on.
My Projected End of Year Total
$18,000 in 401k
$16,500 in Roth IRA
$4400 in Company Match (4% of Gross Salary) + Discretionary Match
$3350 in HSA Account
My current 401k split is 6% in a Traditional and 11% in a Roth 401k. My employer match goes into a Traditional Account. I'm essentially hedging my bets in case federal income rates rise. My eventual plan may be to roll over the Traditional to a Roth in years when my effective tax rate is lower.
Basic Question: Is the decision to split it up in these percentages a good idea?