In This Video:
Should I contribute to my traditional 401k or a Roth 401k in my 60s? We were talking with someone recently when this question came up, and it’s a great one because they are in their highest earning years and making some of their largest contributions.
Things to Consider:
Getting a tax deduction by putting that money into a traditional 401k might seem like a no brainer, but not exactly. It might end up costing you more tax dollars in the future. Should you take advantage of those tax benefits now or pay taxes now and grow your money tax-free through the Roth?
In this video, we will discuss whether it’s better to contribute to a traditional 401k or a Roth 401k when you’re in your 60s by talking about the factors you need to consider.
Here’s what we cover in this financial video:
0:00 – Intro
1:40 – Put together a tax plan
2:56 – Taxable income in the future
4:48 – What tax bracket would that put you in?
5:28 – How to use that information
6:36 – My recommendation in this example
7:30 – What if your tax brackets are the same now and in the future
9:41 – Tax bracket over 30%
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