#550 - Roth 401K or Not? When Should I Switch?

So many retirement questions have no right answers. They’re simply judgment calls. In this episode, we’ll explore whether it makes sense to switch to a Roth 401K.

Don’t listen to find out the answer. Listen to learn the process to use to come up with your own answer.

Does it make sense to switch to a Roth 401K?

How do we walk through this question? Like every other complex question we come across on this show, we think through it in an organized way.

To consider this question think about your tax bracket. What does it look like now and how can you expect it to look later on and into retirement?

Roths provide flexibility, so the question becomes would you prefer to pay taxes now and receive optionality later? Or would you prefer to lower your tax bill now and take your chances with taxes in your retirement years?

How would you approach this question?