Quote:
Originally Posted by lewdog
Thank you. I am still weighing my options. I think I might have to stick with it all in a traditional 401k because I need that tax benefit coupled with the $25k with the standard deduction for tax bracket purposes. The Roth 401k doesn't help me decrease my taxable income.
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Roth 401 gives you 2 significant advantages...
1. You will not pay taxes on anything when you withdraw unlike a regular 401
2. After the account is open for 5 years you can withdraw up to the amount of principal without penalty prior to retirement. This is an added safety net feature if you ask me that you don't get from a regular 401....