Employer offers both traditional and ROTH 401k...

[EconDiva]

...how do I determine if I should continue contributing to my traditional 401k going forward, or to open up a Roth 401k instead?

Plan was to continue contributing the max to both a 401k and a Roth IRA next year.  But what questions do I need to be asking myself if I should instead be opening and maxing a Roth 401k instead? My job offers both.

[maginvizIZ]

401k & IRA are 2 different things; so you could max a roth 401k & roth IRA.


The real question is what do you think your tax bracket will be in once you retire and use these funds.

If you think taxable income is lower in retirement = Traditional IRA & 401k.
If you think it's higher in retirement = Roth 401k & IRA.

Having both will give you options when you retire on how much taxes you want to pay each year.

I currently max traditional 401k & roth IRA to give me options when I retire.  I should probably switch roth IRA to a traditional; but I'm kind of lazy. haha

[Paul der Krake]

Impossible to answer without knowing your current marginal rate, your age, your expected withdrawal patterns, your state, your general savings status, etc.

[terran]

Right, it all comes down to current marginal tax rate vs marginal tax rate in retirement. This should help: https://www.bogleheads.org/wiki/Roth_IRA_as_an_emergency_fund