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To me the primary benefit is when it comes to RMDs. Having a mix of traditional and Roth allows me to draw down the traditional in lower tax years to avoid RMD
by bronco21016 1y ago
To me the primary benefit is when it comes to RMDs. Having a mix of traditional and Roth allows me to draw down the traditional in lower tax years to avoid RMD and have the Roth to fill in those later years or pass on to children. Plus, if you’ve maxed the $23,500ish of the traditional 401k and still have extra to save, it’s more tax advantaged in a Roth vs a taxable brokerage account.
These are obviously champagne problems but if you’re a high earning W2 it’s worth considering.
- scarface_74 1y agoI think I should be able to do that post retirement by optimizing withdrawals with balancing tax brackets the first few years of retirement. I will have to put catch up contributions in a Roth 401K anyway starting next year (new tax law).