I am a 25m that is really just starting to get into financial security and planning seriously, and I am curious about traditional and Roth. My net worth is currently sitting around $85k, current base income is $70k, and I have 3 different investment accounts. I have:
Traditional employer 401k: $30k
Roth IRA: $5k
Roth TSP: $5k
My question is, does it make sense to have Roth and Traditional tax advantaged accounts, or should I convert all my traditional to Roth. I know the benefits of Roth (taxes paid now) vs traditional (taxes paid later), but I’m not sure how people choose between the two. Only argument I have heard about is tax brackets now vs later. My employer does offer a Roth 401k so I’m just curious what all of you guys think would be more beneficial for the long haul. I do plan on rolling over my ROTH TSP over to my IRA once I’m done with my federal income and I’m done receiving a match. Any advice is appreciated, thank you
Traditional vs. Roth
byu/Timely-Individual-83 inpersonalfinance
Posted by Timely-Individual-83