https://nwcm.com/wp-content/uploads/2016/09/New-Logo-for-Header.jpg 0 0 Fred Payne https://nwcm.com/wp-content/uploads/2016/09/New-Logo-for-Header.jpg Fred Payne2017-07-01 09:24:442017-07-01 09:24:44Should I make a Roth contribution?
- YES, if one of the following applies:
- You are paying no income taxes.
- You are in a low tax bracket and expect in future years to be in a higher tax bracket.
- You think your income tax rate at retirement will be higher than it currently is.
- The tax-deduction for a “traditional” 401(k) contribution is unimportant to you.
- You are in a high tax bracket and want to maximize the after-tax income you will have during retirement.
- NO, if one of the following applies:
- 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.
- You will be in a lower income tax bracket during retirement.