Both a Traditional and Roth 401(k) definitely have their own place in your retirement savings and the decision to choose one over the other isn’t always straightforward. Given the uncertainty around future tax rates, let’s look at which one of the two options works out the best for your situation. In this analysis, we are going to make a few assumptions and run an analysis on both the type of accounts and see which one comes ahead.
401(k)s are undoubtedly the most important retirement vehicles available today, given that pensions are on the decline and the future of Social Security doesn’t look bright. What makes 401(k)s super important is an alarming number of Americans have little to nothing saved for retirement individually. According to this CNBC article, nearly 42% of Americans could … Read moreHow To Save For Retirement Without A 401(k)
A 401(k) plan is an employer-sponsored retirement savings plan that allows an employee to contribute a portion of his or her paycheck into a tax-advantaged investment account. The employee typically chooses from a range of investment options within the 401(k) plan. These options, which often include mutual funds, are chosen by the plan sponsor. How do you know if your 401(k) plan is good? Is there a way you can evaluate a 401(k) plan?
If you’re leaving your job for a new employer, it’s important to address whether or not to roll over your 401(k). The wrong decision could cost you. One of the most common questions you have encountered is “What should I do with my 401(k)?” This article will explain in detail under which scenarios, you should not rollover your 401(k) to a Traditional IRA.