401k vs roth
Hello,
I have a question about contributions to 401k vs a Roth. I am about 5 years +- away from retirement and can choose where to put my contributions. Is one better than the other. My thinking is to leave it in ” not taxed” until I retire since I will have a lower tax rate. Am I on the right path?
thanks
Terry Says
If you’re getting a “match” then definitely use the 40l(k)! If not, consider opening a Roth IRA — but remember you won’t get a deduction (just tax-free growth and no RMDs) so you might have to adjust your withholdings so you don’t get a tax bill at the end of the year.
