28 yo, 120k salary, single, Roth 401k or traditional 401k

[Anonymous]

I should do Roth right?

[Anonymous]

You could do a mix of both and contribute to a Roth IRA

[Anonymous]

I would do traditional all the way unless you have some reason to expect your income/tax rate will be higher in retirement.

If you are contributing the max to a traditional then I would do a Roth IRA.

[Anonymous]

28 and $120K salary, may I please ask what you do? Thank you.

[Anonymous]

Anonymous wrote:28 and $120K salary, may I please ask what you do? Thank you.

In health care sector. I thought everybody makes at least 200k by my age here?

[Anonymous]

The conventional wisdom is probably to do traditional 401k because your taxes will be lower in retirement, however, I don't know how much that is true any more. The US faces dire financial conditions in the future thst will likely mean significant tax increases. Investing in a Roth 401k now is not just investing, but also locking in historically low taxes. I max.out Roth 401k to take advantage of these taxes. You can always split between traditional and Roth 50-50 to diversify your tax liabilities just like you do for your investment risk.

[Anonymous]

Anonymous wrote:

Anonymous wrote:28 and $120K salary, may I please ask what you do? Thank you.

In health care sector. I thought everybody makes at least 200k by my age here?

Fed lawyers never make 200k. Even when they are 50. Get with reality.

[Anonymous]

Anonymous wrote:The conventional wisdom is probably to do traditional 401k because your taxes will be lower in retirement, however, I don't know how much that is true any more. The US faces dire financial conditions in the future thst will likely mean significant tax increases. Investing in a Roth 401k now is not just investing, but also locking in historically low taxes. I max.out Roth 401k to take advantage of these taxes. You can always split between traditional and Roth 50-50 to diversify your tax liabilities just like you do for your investment risk.

Listen to this poster. I’m 35 years older than you. Fell on hard times and had to use my traditional IRA and the taxes are killing me.

[Anonymous]

Roth first to the maximum allowable amount.

[Anonymous]

I just listened to a retirement thing at my office that thought that while the temporary lower Trump tax rates are in place (a few more years), it is a good time to put some $$ in a Roth. Just one persons opinion of course.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:28 and $120K salary, may I please ask what you do? Thank you.

In health care sector. I thought everybody makes at least 200k by my age here?

Fed lawyers never make 200k. Even when they are 50. Get with reality.

What a strange myth. Some agencies have alternative pay scales.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:28 and $120K salary, may I please ask what you do? Thank you.

In health care sector. I thought everybody makes at least 200k by my age here?

Fed lawyers never make 200k. Even when they are 50. Get with reality.

Sorry. Finding reality is confusing here.

-op

[Anonymous]

Anonymous wrote:You could do a mix of both and contribute to a Roth IRA

This. You want some of both for tax purposes when you retire.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:28 and $120K salary, may I please ask what you do? Thank you.

In health care sector. I thought everybody makes at least 200k by my age here?

Fed lawyers never make 200k. Even when they are 50. Get with reality.

Sorry. Finding reality is confusing here.

-op

I call troll

[Anonymous]

Anonymous wrote:

Anonymous wrote:28 and $120K salary, may I please ask what you do? Thank you.

In health care sector. I thought everybody makes at least 200k by my age here?

Are you a nurse?