MSN: Retire Rich: Answers to Your Burning 401k Questions

Published on MSN on April 13, 2023

Should my 401k Investment be a Traditional or a Roth?

As David A. Fowler, CFP®, ChFC® of High Mountain Financial Coaching LLC, says, “The decision of whether to invest in a traditional 401k versus a Roth 401k is mainly driven by taxes – both today and what you as an investor believe your tax situation will be in the future at retirement. If you are a high-income earner now and believe your income will be lower in retirement – taking the tax deduction now will lower your immediate tax bill. If you expect to have similar (or higher) income at retirement, it may make more sense to take the tax hit today, invest in a Roth and be able to pull that money tax-free at retirement.”

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