Re: Roth 401k vs Traditional
I see two advantages to the Roth 401k that I have not seen mentioned above.
1) You can effectively contribute more money to the Roth 401k than
* * *to a traditional 401k.* Though this only matters if you have hit
* * *the federal limit on your annual contributions.
* * *If you do hit the limit, then your Roth contribution is effectively
* * *larger by whatever marginal tax rate exists when the money
* * *is eventually withdrawn.
2) If you plan to leave any money to relatives, you are better off
* * *leaving money in a Roth account than in a "traditional" account.
* * *That stretches out the tax free compounding to the max.