Author Topic: Upping my 401k ... go Roth or stay traditional?  (Read 1727 times)

albireo13

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Upping my 401k ... go Roth or stay traditional?
« on: November 22, 2015, 07:40:38 AM »
I've been doing the minimum 401K contribution (6%) to get all the company match.  I've been doing this in order to pay off CC and loan debt.
I've now paid them off and want to up my 401K contributions.  I don't plan on maxing out since, I also want to build up cash reserves (need a car soon, moving expenses, etc).  I was planning to go from 6% to 13%.  So far I have all my 401K in traditonal.  I like the idea of a Roth (tax free growth) but, don't know if it makes sense since I still am not maxing traditional contributions.   I am 60yo and expect to work another 3+ yrs.

Rob

boarder42

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Re: Upping my 401k ... go Roth or stay traditional?
« Reply #1 on: November 22, 2015, 07:44:01 AM »
What is the tax bracket you're currently in and how much do you plan to spend in retirement

albireo13

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Re: Upping my 401k ... go Roth or stay traditional?
« Reply #2 on: November 22, 2015, 07:51:09 AM »
We are in 28% bracket currently.  Working on a retirement budget now.  I want to spend <$50K/yr when we retire.
My wife wants to spend <$80K/yr.        : (

boarder42

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Re: Upping my 401k ... go Roth or stay traditional?
« Reply #3 on: November 22, 2015, 09:11:02 AM »
Don't do a Roth then. You want to save on those taxes now