It is still a valid reason not to contribute to Roth 401K. Unless OP is fully employed continously until retirement, OP will be unemployed or under employed in some years. Then, OP can Roth convert the Trad 401K and pay lowered taxes."Only if you are lucky enough not to be unemployed in the coming recession." The OP can correct me if I'm wrong, but while it's a legitimate topic, I don't think her or his question was about preparing for unexpected unemployment in a recession around the corner. And when I say one makes more money (usually) in one's older years, I'm not talking about next year. Obviously the point is to be able to live at a standard one wants, while making the best investment decisions for them.
Contributing to Roth 401K is a very bad idea. Paying a lot of taxes when you are young and not having much money is not a good thing.
"And when you make more money, you're in a higher tax bracket (usually)."
Only if you are lucky enough not to be unemployed in the coming recession. You have to survive in order to succeed. When you do not have much money, it does not take much unemployment to wipe you out.
KlangFool
KlangFool
Statistics: Posted by KlangFool — Tue Nov 19, 2024 6:41 am