Question

401K vs 401K Roth

Forum|Forum|2 years ago
July 26, 2023
2 replies
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I have a 401K and i am probably four year away from retirement. does it make sense to move my 401k to a 401k Roth if i can afford having paying for the tax now?

Ask the Experts - Retirement - July 2023

C

conniem123

Hi ro-solano, thank you for the question!

There are definitely considerations to convert from traditional to a Roth. Paying the tax now while you have the funds is a major consideration. Unfortunately, this is a financial planning question rather than a tax question.

Here is a great resource as you consider the conversion, https://turbotax.intuit.com/tax-tips/investments-and-taxes/now-everyone-can-convert-to-a-roth/L4NEqOEla.

I hope this information is helpful!

Connie

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Q

quorumof1

Hi There:

If you think that you will be in a higher tax bracket when you retire. Then it makes sense to pay taxes now at the lower bracket. However, most people enter a lower tax bracket upon retirement, but you might be the exception to the rule.