Reported 24 days ago
As a married couple in their late 50s with $1.6 million in their 401(k), the article explores whether switching to Roth contributions is advantageous for their retirement savings. Roth IRAs offer tax-free withdrawals in retirement but require upfront tax payments, making them beneficial for those expecting a higher tax rate in retirement. Conversely, the article argues that couples at peak earnings may find greater value in sticking with pre-tax contributions, as current higher tax rates can potentially decrease their overall savings in retirement.
Source: YAHOO