yes Roth is not free you pay taxes when you convert as income vs paying taxes later after you retire for traditional 401k typically most people take far less income in retirement so you tend to be in a lower bracket than your earning years so deferring tax makes sense but nobody can tell you for certain how much taxes will be in the future or how productive the markets will be so ultimately it’s all a guessing game
Yeah, they probably meant just a regular rollover 401k. I have both a rollover and a Roth, because one is from previous employment and the other is what I contribute to biweekly
Don’t you have to pay taxes on the 401k balance that you transfer to the Roth?
yes Roth is not free you pay taxes when you convert as income vs paying taxes later after you retire for traditional 401k typically most people take far less income in retirement so you tend to be in a lower bracket than your earning years so deferring tax makes sense but nobody can tell you for certain how much taxes will be in the future or how productive the markets will be so ultimately it’s all a guessing game
Yeah, they probably meant just a regular rollover 401k. I have both a rollover and a Roth, because one is from previous employment and the other is what I contribute to biweekly