{ "media_type": "text", "post_content": "Right now I’m maxing out my Roth IRA and contributing to my Roth 401k ( I get a company match but those $$ go into the regular 401k. Does it make sense to then rollover my Roth 401k into the Roth IRA? (I figure I have more investment options and don’t have RMDs when I retire) \n\nIs this the best way to invest for retirement right now? I make 80k a year so I figure my taxable income will only increase over the years.", "post_id": "625ead70a0c51c0032689128", "reply_count": 4, "vote_count": 1, "bowl_id": "5b3f7377ab53db00136f7b4c", "bowl_name": "FIRE Financial Independence Retire Early", "feed_type": "bowl" }
null

Right now I’m maxing out my Roth IRA and contributing to my Roth 401k ( I get a company match but those $$ go into the regular 401k. Does it make sense to then rollover my Roth 401k into the Roth IRA? (I figure I have more investment options and don’t have RMDs when I retire)

Is this the best way to invest for retirement right now? I make 80k a year so I figure my taxable income will only increase over the years.

like
Posting as :
works at
You are currently posting as works at

Yes it makes sense to roll your Roth 401k into your Roth IRA. However, most employers will only let you do this once you quit. I would not worry about RMDs for Roth 401k, because if you retire, you are quitting your job and therefore you'll be allowed to do a rollover to a Roth IRA.

You're misunderstanding the decision between Roth and traditional. Your taxable income increasing over time is irrelevant. If that were the correct logic, almost everyone would choose Roth. I suggest reading up on some boglehead forums on this topic.

It's your tax bracket today vs your expected tax bracket in retirement. If you're in the 22% bracket now and expect to work your way up to the 35% bracket, that's great. But if you expect to retire in the 12% bracket, you should be using traditional 401k your whole career.

You can do a Roth conversion ladder for your traditional 401k funds if you plan to retire early. Will reduce any RMDs and if done correctly can lower your tax burden.

like

That’s what I meant, I’m guessing right now that I’m in the lowest tax bracket I’ll ever be in. To your point, the tax bracket in retirement is the only one that matters. The problem is guessing where the tax rates will be in 40 years.

Tax rates will likely be higher in the future, but typically the lowest tax brackets (which is where you'll likely be in retirement) are not impacted enough to influence the decision between traditional and Roth.

Do you have access to mega backdoor Roth?

Additional Posts

Do you use Facebook or LinkedIn more?

like

Hot Question: Do any in-house lawyers enjoy their job? Note I don’t mean enjoy their life, of which they actually have possession of such unlike their firm counterparts. I mean do you enjoy compliance manuals, hr meetings, and general snooze tasks of day to day work?

like

Partner told me that I’m on track to bill the firm’s required hours and then proceeded to tell me I can take on more projects and work. Nope. I’m good. I don’t want to be partner. And it such a shame I can’t express this without worrying how it may look to the partners in my practice group.

like

🐠 fam I just recently learned this - 1.5 inch heel is better than flats by a million times. I was a flats gal all the way. But a recent change opened my eyes. Hopefully it helps someone. Ara heel rock

likehelpful

I have a part time babysitter who is also a student. Do I still pay her if so go on vacation for 2 weeks ?

like

Etiquette question. If you are Group 1, but by the time you get to the gate, they are boarding Group 4. Do you join the line and board with the others or cut the line to get to the front? Thoughts?

like

Anyone in Edinburgh?

like

My other one.

Post Photo
likefunnyhelpful

Did you know that today commemorates the anniversary of the nation's first federal special education law, The Individuals with Disabilities Education Act (IDEA), signed into law on December 2, 1972? #supportSPED

likehelpful

Going to fire island baby!! 🙌🏾🌴

like

Hi,
I joined Deloitte on 01st Nov, 2021. I missed raising the snapshot which was due Jan 7th 2022. As I was new to the firm, i mistook it that the snapshot has to be raised to the people who joined before June. Now that I informed my coach, he said to leave it and told that I won't be eligible for the hike this year. Any suggestions what can be done now. how would it impact ?

like

Do y’all work during PTO?
I have a new exec that has been on vacation this week, this person has not been on calls with the team but has required daily status reports and reviews all week. What is going on? Micromanagement? No trust? Or is this the new expectation?

funnylike

I’m gonna vote later today. Haven’t done any research. Who’s running for President this year?

funnylike

What is the 401k match % for the various firms. Heard Accenture matches 100%!!?

like

Anyone took a leave of absence, or knows anyone who did, to try to conceive? What was that like?

like

Question!

Why is the housing loan tab disabled for editing? I have availed a house loan and want to avail tax benefits.

Post Photo
like

What’s a reasonable timeline to ask/expect between application and the job starting? Like if I’m currently applying for places, is it insane to think/ask if I could start in September?
I’m realizing how burnt out I am and I need some time off - my current job ends 7/15. I’m obviously not going to aggressively apply, but I don’t know the strategy to take - should I just stop applying and wait til mid-July/August?

like

My boyfriend and I are both consultants and travel throughout each week. He works with another young woman our age on his team. Does anyone else worry about their partners when away every week?

like

Recently switched companies and my new insurance is horrible. Doesn’t cover a lot of procedures and has a big deductible and high cost. Has anyone had success with alternative ways of getting insurance? Or is the employee subsidized insurance typically your best bet?

like

Hi everyone, could you please help me in the band structure of TTN (To The New) company. Any ex-TTN or friends

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
Download Fishbowl to see what others are saying
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the Fishbowl app

For account settings, visit Fishbowl on Desktop Browser or

General

Legal