roth or 401K contribution?
Hi Terry:
I am 55 , currently max out my 401k with catch up contributions. now $27000. Should I use some of that for Roth contributions or stay the course and take advantage of tax deferrals.
Terry Says
I’m assuming your company offers a ROTH 40l(k) option in its plan. If that’s the case, and you don’t really need the tax deduction now, then by all means balance things out by contributing after-tax money to the Roth.
But if you’re asking about a ROTH IRA vs a traditional 40l(k) plan, be sure to max out enough in your company plan to get the match before opening a Roth IRA.
