Roth 401ks have become an increasingly popular alternative to traditional 401ks, allowing participants to make after-tax salary deferrals to their employer plans. You may have the opportunity to contribute to a designated Roth account in your 401k, but are uncertain about the best savings strategy for your personal circumstances.
This flowchart helps guide you through a series of considerations that will inform your decision whether to contribute to a Roth 401k, and covers:
- Future tax rate expectations.
- Roth IRA eligibility.
- Employer matching considerations.
- RMDs and future rollover options.
- Additional savings opportunities through backdoor Roth contributions.