Hey All,
Long time lurker of both this board, fool, and dripinvesting. 28 y/o male wih DW of 25 years. On the verge of changing jobs from one financial company to another with a hefty pay increase. Kind of stumped though on a decision regarding 401k(no -- I'm not cashing out will roll-over to Vanguard IRA). The new company offers a 401k-Roth, however I'm puzzled regarding the point of indifference between leveraging the Roth 401k versus traditional 401k. I believe a big portion of the equation lies in my current tax rate versus what will the future tax rate will be once I retire. Any thoughts -- would be happy to provide details. Also -- is it possible to roll a traditional 401k into a 401k roth -- assuming i'd have to pay the related taxes out of pocket. Thanks in advance.
-Gatorguy
Long time lurker of both this board, fool, and dripinvesting. 28 y/o male wih DW of 25 years. On the verge of changing jobs from one financial company to another with a hefty pay increase. Kind of stumped though on a decision regarding 401k(no -- I'm not cashing out will roll-over to Vanguard IRA). The new company offers a 401k-Roth, however I'm puzzled regarding the point of indifference between leveraging the Roth 401k versus traditional 401k. I believe a big portion of the equation lies in my current tax rate versus what will the future tax rate will be once I retire. Any thoughts -- would be happy to provide details. Also -- is it possible to roll a traditional 401k into a 401k roth -- assuming i'd have to pay the related taxes out of pocket. Thanks in advance.
-Gatorguy