Who should consider saving in a Roth 401(k)?
Roth 401(k) is not just for highly paid individuals. This new type of contribution can benefit a wide variety of people in many ways. You may recognize yourself in one of these scenarios: *Participants of all income levels who are looking for an opportunity to diversify future tax risks You might want to simply hedge your bet against the unknown and invest contributions in both the Roth 401(k) and the traditional 401(k). *Participants of all income levels who expect tax rates to rise in the future If this is your case, you may find that you are better off paying taxes now rather than paying higher taxes on your retirement savings in the future. *Younger workers and lower income taxpayers If you expect your income to increase over your career, you may find contributing to the Roth feature today to be very advantageous, as you may be in a lower tax bracket than you will be in the future. Also, if you are far away from retirement, you might be interested in Roth 401(k) as you anticipate t
Roth 401(k) is not just for highly paid individuals. This new type of contribution can benefit a wide variety of people in many ways. You may recognize yourself in one of these scenarios: *Participants of all income levels who are looking for an opportunity to diversify future tax risks You might want to simply hedge your bet against the unknown and invest contributions in both the Roth 401(k) and the traditional 401(k). *Participants of all income levels who expect tax rates to rise in the future If this applies in your case, you may find that you are better off paying taxes now rather than paying higher taxes on your retirement savings in the future. *Younger workers and lower income taxpayers If you expect your income to increase over your career, you may find contributing to the Roth feature today to be very advantageous, as you may be in a lower tax bracket than you will be in the future. Also, if you are far away from retirement, you might be interested in Roth 401(k) as you anti
