{ "media_type": "text", "post_content": "I always contributed to a Roth 401k while at KPMG. I have recently left the firm and need help choosing whether to go traditional or Roth 401k at my new gig. Salary is at $150k. Any recs/thoughts?", "post_id": "5bec2fd924ec150018061267", "reply_count": 4, "vote_count": 2, "bowl_id": "59064a3cb12379001006592c", "bowl_name": "Personal Investment Chatter" }

I always contributed to a Roth 401k while at KPMG. I have recently left the firm and need help choosing whether to go traditional or Roth 401k at my new gig. Salary is at $150k. Any recs/thoughts?

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It comes down to 2 things: 1. Logic: a. Future tax rate lower? Traditional b. Future tax rate higher? Roth 2. Emotional: a. Looming tax burden not a factor? Trad b. Looming tax burden a factor? Roth Since no one can tell the future, I prefer Roth because I prefer to get the income tax out of the way.

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A1, op means what should his future contributions be. Op, I would go Traditional 401k at new gig for the tax-benefit. And if the new gig offers post-tax contributions beyond the 2019 $19k pre-tax limit, continuing contributions post-tax and then Mega Backdoor to Roth IRA (assuming you do not have an active Traditional IRA). Google Roth IRA Mega Backdoor for more info. You should also roll over your Roth 401k into a Roth IRA (any previous employer contributions to your old 401k are pre-tax, so you will have to pay taxes on those contributions and earnings if moving from Traditional IRA to Roth IRA - note, you’ll need to do this if you Mega Backdoor)

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If you switch to traditional I believe you’ll have some tax implications. General advice is to stick it in the same bucket as where it came from (Roth 401k to Roth IRA in this case). Just out of curiosity why have you chosen to contribute to a Roth 401k instead of a traditional (pre tax) 401k?

1 issue with roth is that you don't know if the government will just screw you in the future. Maybe they'll tax your roth? With trad at least you know itll be taxed once

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