DAYDREAMER
Recycles dryer sheets
- Joined
- Mar 26, 2008
- Messages
- 413
My employer will be offering a 401k roth, as well as continuing the standard 401k at the start of the year. I need opinions which to fund.
We (DW and I) have 705k in the standard 401k. We will be contributing 18k and 6k catchup each. Both of us work for same employer. DW will be 51 and I will be 50 in 2015.
If we fund the roth 401k, we would not be able to fund an outside roth due to exceeding income limits. Our combined income is $225k before taxes.
We will be retiring at 55 and will be recieving 36k pension (combined)/yr before taxes. My calculations show that we will have 1.1 million in 401k at 55 (5% growth projected). At 55, we planned on rolling 31k/yr into a roth to stay within the 15% tax bracket. DW would be taking SS at 62, which will be 1600/month, and I will take SS at 70, which will be 3600/month.
If we go with standard 401k, we would fund an additional 12k into an vanguard roth. If we fund the roth 401k, we would have to figure out what to do with extra savings we will accumulate.
Currently no debt, and mortgage paid off.
Whew, after all that, which would be best to fund in the 401k? the roth? or the standard 401k?
We (DW and I) have 705k in the standard 401k. We will be contributing 18k and 6k catchup each. Both of us work for same employer. DW will be 51 and I will be 50 in 2015.
If we fund the roth 401k, we would not be able to fund an outside roth due to exceeding income limits. Our combined income is $225k before taxes.
We will be retiring at 55 and will be recieving 36k pension (combined)/yr before taxes. My calculations show that we will have 1.1 million in 401k at 55 (5% growth projected). At 55, we planned on rolling 31k/yr into a roth to stay within the 15% tax bracket. DW would be taking SS at 62, which will be 1600/month, and I will take SS at 70, which will be 3600/month.
If we go with standard 401k, we would fund an additional 12k into an vanguard roth. If we fund the roth 401k, we would have to figure out what to do with extra savings we will accumulate.
Currently no debt, and mortgage paid off.
Whew, after all that, which would be best to fund in the 401k? the roth? or the standard 401k?