Should I make a Roth contribution?

  1. YES, if one of the following applies:
    1. You are paying no income taxes.
    2. You are in a low tax bracket and expect in future years to be in a higher tax bracket.
    3. You think your income tax rate at retirement will be higher than it currently is.
    4. The tax-deduction for a “traditional” 401(k) contribution is unimportant to you.
    5. You are in a high tax bracket and want to maximize the after-tax income you will have during retirement.
  2. NO, if one of the following applies:
    1. The tax deduction for a “traditional” 401(k) contribution is important to you—and the deduction helps you to make a larger 401(k) contribution.
    2. You will be in a lower income tax bracket during retirement.