Traditional 401k or Roth 401k
My company is offering both of these 401k and wanted to get some feedback.
Right now, I'm at 28% fed and 9% state. I know this decision depends on my future rate at retirement but I'm 27 and who knows what it'll be 30 yrs from now.
What I know currently is the following:
- I can afford to max out roth IRA and roth 401k but that'll leave little room for taxable account investing.
- I'm always looking for beginning of the year because I can max out my roth IRA (I know this sounds nerdy).
- I expect to hit 35% rate in couple of years.
- I expect to stay with my current company for 2-3 yrs and who knows if my future employer will be offering roth 401k.
I know my comments are leading to roth 401k but just wanted to get some feedbacks I might be overlooking.
One more question.... is it possible to rollover my 401k to traditional or roth IRA at the end of the year even though I'm still employed with the same company? Our company expense ratio is quite high so just thinking about this option.
Thanks in advance for the inputs.