401k vs Roth 401k

[ncbill]

A Roth contribution is only appropriate in two cases: your net taxable income for the year is at or near zero, or you want to give your Roth account as an inheritance since it can be left to accumulate tax free for two lifetimes. This is an extremely powerful legacy building technique.

yes, I'm matching my kid's Roth contribution to ensure they get the maximum, while they're still in undergrad.

plan to do the same for several years after graduation, as long as they also continue to heavily contribute to their TSP account.

& if Uncle Sam allows their current career choice, Roth would be best until they're out of grad school.

 

[Penny6]

We decided to put a small portion of a bonus 4k to the Roth 401k since we still received a tax refund. We will see if it what impact it has and maybe increase 1-2% a year from here. The rest will go into Traditional 401k and we hope to hit 500k by yr end! Our Magi has phased us out of Roth IRAs but hoping to backdoor some funds from our IRA to the Roth