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How to Tell if a Roth 401(k) is For You
 
 
Many employers offer a traditional 401(k) but you may want to consider a Roth 401(k) if it’s available.

 



Key Takeaways:





  • Roth 401(k) contributions are made with after-tax dollars while a traditional 401(k) is pre-tax.





  • The same contribution limits apply to the Roth 401(k), $18,000 annual max and $6,000 catch-up contribution for those over age 50.





  • You can split your contributions between the traditional 401(k) and Roth 401(k).





  • If you expect your tax rate to be higher when you pull the money out in retirement, you're better off paying taxes now and avoiding them later with a Roth 401(k).

 

Read more here: http://www.usnews.com/news/business/articles/2016-11-23/how-to-tell-if-a-roth-401-k-is-for-you

 
 
 
 
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