Can’t believe this thread is on the seventh page on cc, what’s going on here??
So it looks like my company may be offering us a 401K Roth option (yay). I’ve looked at a bunch of articles and I’m still not sure. Definitely leaning on doing it, though. Suspect our tax rate will be about the same in retirement, probably not going to access those Roth funds for a long time. Seems like it would make our RMD requirements go way down.
Is anyone doing this now?
We have not used Roth option in DW’s 401k in the past, although through mega backdoor Roth and “normal-sized” backdoor Roth she has managed to get a six digit Roth account.
She is at max tax rate, which might or might not be lower in retirement. I am hoping that a small window will open for conversions between retirement and SS & RMDs for her, but I’m not optimistic.
I just got James Lange’s book *Retire Secure. I might be influenced by him, but I think that we’ll just have our mix of tax-deferred IRAs and 401ks, taxable accounts, and tax-free Roth IRAs with most future growth in taxable.
I’m not doing it. My employer has been offering Roth 401k for a while now.
I just wonder if it’s worth it to save right now on taxes, and then 20 years later, to pay taxes on all that growth. Hopefully, there’s a lot of growth.
It probably is but I do plan to convert some of my tIRA to Roth when I retire, depends on the tax bracket. I have about 15 years to do it. It’s just not worth my hassle now in my 401k.
I’m self employed, as is DH, and we recently investigated converting our 6 figure IRAs to Roth IRA’s-
not worth the taxes we’d have to pay now.
"I just wonder if it’s worth it to save right now on taxes, and then 20 years later, to pay taxes on all that growth. Hopefully, there’s a lot of growth. "
If someone has the opportunity to set up a NEW Roth, I’d say do it !!
I think a good deal with the Roth 401K is that the limits are higher, to 401K limits, not IRA ones.
I have Roth 401K but I have not used it yet.
I contributed money to my kids Roth IRA. I think they have a longer time frame to benefit from it. I don’t anticipate using my existing Roth IRA so I’m not sure I want to contribute more. However, when I do my tax if it looks reasonable to convert some then I will, small amount every year. I’m already on a lower bracket then I was perhaps 10 years ago. So I think it will continue this low tax bracket for a while.
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So glad to see our 401k recover some (still down a little from Friday close, but made up the losses from Manic Monday and Tuesday). -1.53% for the year, and -6.48% for the month.
I plan on moving the money slowly to a Roth when we stop working and when we move to a “no state” income tax state. Everyone’s situation is different.
Someone mentioned avoiding state tax. This gave me a thought:
If we end up moving to Canada as our primary residence (which ShawWife would love), there is no estate tax in Canada (although there are some very small probate taxes in provinces). It looks, from my internet research, that our dynasty trust will, given the way it was set up (no Canadian settlors, no Canadian trustees) to be exempt from Canadian tax. If the income in the trust is added to the trust capital, then the distributions to Canadian beneficiaries will apparently also be exempt from Canadian tax.
But, since we are US taxpayers, we will still be liable for US tax and the trust is liable for US tax. While I suppose that we could give up US citizenship to eliminate those taxes (which in some years could be sizeable), we won’t do that.
Hey @shawbridge you have been missed. Glad to see you are keeping those brain cells going with continued thoughts on retirement.
I solved my job drama. Today is my last day. 
Sadly, DW won’t let me retire (I’m… notrichenough), so in a week it’s back to the grindstone at a new place. B-)
The worst part is losing my 7 minute commute.
I created this new CC account @richenough for you.
Hahaha, @coolweather. 
I’m holding out for @filthyrich. :))
My new company considers themselves pre-IPO, so I might get a little retirement boost in a couple years. Got a pretty nice pay raise too, I should be able to funnel some of that into retirement funds as well.
Enjoy your retirement even for just one week.
I wish DW shared that sentiment. My “honeydew” list is already a mile long. I’ve got an apartment to paint, some flooring to install, some electrical work to do, some landscaping stuff…
That’s a lot to do in one week. But maybe that’s a pattern to NOT looking for in retirement. You’ll be a handyman without paid. Are you sure you want to retire?