A lot of the posters here seem to have, and advocate contributing to, Roth accounts, and an advisor at my wife's office recently suggested we contribute as much as we can to her 403b Roth, but I just don't get it.
We're mid-40s with approx. $350K saved so far, almost all of it in regular 401k/403b accounts. Our current combined annual salary is ~130K and we're each contributing the $17.5K max. Given all of that I don't see how we're going to be able to save enough to be in a higher tax bracket in retirement, and based on what I've read that is the main advantage of a Roth, i.e., taking the tax now at what would presumably be a lower tax rate than what you could expect to pay later.
But with all of the Roth proponents, I feel like there is some other obvious advantage that I am just flat out missing. Or is it simply that everyone is pretty well convinced that taxes are going to rise significantly?
Please help an imbecile out and explain to me, as you would to a child, what I'm not getting
We're mid-40s with approx. $350K saved so far, almost all of it in regular 401k/403b accounts. Our current combined annual salary is ~130K and we're each contributing the $17.5K max. Given all of that I don't see how we're going to be able to save enough to be in a higher tax bracket in retirement, and based on what I've read that is the main advantage of a Roth, i.e., taking the tax now at what would presumably be a lower tax rate than what you could expect to pay later.
But with all of the Roth proponents, I feel like there is some other obvious advantage that I am just flat out missing. Or is it simply that everyone is pretty well convinced that taxes are going to rise significantly?
Please help an imbecile out and explain to me, as you would to a child, what I'm not getting