Hi all, I have a question regarding retirement accounts. I am not sure if I should choose a Roth or 401k (company has 4+2% match). Currently 23, base salary is ~100k and investments have brought 45k this year which has me teetering between a 22-24% tax bracket. Wondering what the usual tax bracket is of people retired (around 65yo) as I’m not sure anything would bring in significant income with the exception of investments. In my case would a Roth make sense? Appreciate any answers!!

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Neither. If you’re 23 and your base salary is 100k now, it’s only going to go up in the future and you might not qualify for a Roth IRA based on your income (not sure what your bonus is). Assuming you have a long way to go in your career and will be in a higher tax bracket, a Roth 401k is recommended. Plus, you should never ever pass up the company match (which will usually be made into a traditional 401k account on behalf of the company).

likehelpful

That’s what it is now... but what will the tax rate be when you retire? Tax rates can always change. I would rather pay now than be unsure later.

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At $100k I would go with traditional 401k and open up a Roth IRA

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thanks for the info!

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