Comments on: Should I ditch my traditional 401(k) for the Roth 401(k)? https://www.onefrugalgirl.com/should-i-ditch-my-traditional-401k-for-the-roth-401k/ Earn, Save, and Live Joyfully. Thu, 02 Feb 2012 20:50:07 +0000 hourly 1 https://wordpress.org/?v=6.8.3 By: Daniel https://www.onefrugalgirl.com/should-i-ditch-my-traditional-401k-for-the-roth-401k/comment-page-1/#comment-17 Fri, 07 Apr 2006 16:52:00 +0000 http://www.onefrugalgirl.com/?p=24#comment-17 I would think about it before you rush all your money into the Roth 401(k). You should first contribute enough to reach your employer’s match, usually only done in a traditional 401(k). Next, you should use a Roth IRA, rather than the 401(k) because it has non-financial benefits (e.g., ability to withdraw for first home, disability, do not have to take withdrawals after 70.5, etc.).

Once you’ve maxed your Roth IRA, go back to your original determination.

It is NOT certain that tax rates will be higher (although it is likely). We very well could 30 years from now be in a flat tax economy or a sales tax economy, then the Roth would yield less benefits. The best bet is to 50/50 mix of both, when you retire, you have the option of withdrawing from the one that yields the most benefits first before tapping into the other one.

]]> By: calgirlfinance https://www.onefrugalgirl.com/should-i-ditch-my-traditional-401k-for-the-roth-401k/comment-page-1/#comment-16 Thu, 06 Apr 2006 16:44:00 +0000 http://www.onefrugalgirl.com/?p=24#comment-16 I would definitely go for the Roth 401K. I even emailed my employer asking for it. And this might be a limited time opportunity since the Roth IRA is set to expire in a few years (2010 I think) unless it’s renewed.

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