My company now offers Roth IRA for their employees whereas it was just 401k that they matched up to 6%. Should I invest in both or just do ROTH IRA. Company will do 6% on ROTH too
Can someone assist w/ ROTH IRA Question?
byu/Embarrassed_Low_3923 intax
Posted by Embarrassed_Low_3923
1 Comment
Are you sure you mean Roth IRA and not Roth 401k?
The main difference is that you get a deduction for contributing to a Traditional 401k, but no deduction for contributing to a Roth 401k. But, after you retire, you’ll have to pay taxes on all the money you take out of your Traditional 401k, but no taxes on the money you take out of your Roth 401k (except the employer matches).
So, if you expect to be in a lower tax bracket when you retire, the Traditional 401k might be better. If you expect to be in a higher tax bracket, the Roth 401k might be better.