Update: Traditional 401(k), Roth IRA, Roth 401(k) – Oh My! April 6, 2007Posted by pf in Expenses and Savings, Taxes.
In a previous post, I had discussed my newly available Roth 401(k). You may recall that I had decided to basically do nothing right now and continue to ponder my options. I came across this article from one of my readers which has caused me to re-evaulate my thinking about both the new Roth 401(k) as well as my overall contribution strategy between my existing 401(k) and Roth IRA. The article is:
Up to this point, I have been very much of the belief that balancing out my retirement funds with more in the Roth was the way to go. Now, I am thinking I should always at least max out my 401(k) and then contribute whatever I have left over to the Roth. Sigh…I could really use something more definitive, everything I read makes it seem like a crapshoot…either I’ll look like a financial genius or be lamenting my foolish choice.
If anyone feels strongly about this topic, I’d love to hear your opinions (I can’t possibly be the only one going through this).