{ "media_type": "text", "post_content": "If my firm allows both traditional and Roth 401K, which one should I invest in? 27 years old, $90k salary.", "post_id": "614cb858b57e060029077aeb", "reply_count": 3, "vote_count": 2, "bowl_id": "59064a3cb12379001006592c", "bowl_name": "Personal Investment Chatter" }

If my firm allows both traditional and Roth 401K, which one should I invest in? 27 years old, $90k salary.

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The theoretical answer is Roth if your tax bracket now is lower than it will be when you withdraw in retirement. Or traditional if your rate now is higher than when you withdraw. That is only better for traditional is you invest the cutesy tax savings so you have a larger balance later. Since you don’t know what tax rates will be in the future, a split may be the right answer

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I don’t think there is really any right number. 50/50 is where I would start. Just remember to invest any tax savings from the traditional amount. Otherwise all Roth would be better

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