{ "media_type": "text", "post_content": "Should I do a Roth or traditional 401k if I hope to stop working around 45-50? Planning to max it out no matter what but torn between the two.", "post_id": "616e558cc9c372002cba697d", "reply_count": 10, "vote_count": 2, "bowl_id": "5b3f7377ab53db00136f7b4c", "bowl_name": "FIRE Financial Independence Retire Early" }

Should I do a Roth or traditional 401k if I hope to stop working around 45-50? Planning to max it out no matter what but torn between the two.

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

Probably traditional since you won’t be able to take distributions until 55, and if you stop working at 50 your tax bracket will likely be lower when you pull funds. In practice though if you’re unsure you can just split 50/50 and hedge your odds

likehelpful

Traditional and then do a Roth IRA ladder while you're in a low tax bracket (like when you aren't working). You'll just need enough money to sustain you for 5 years while you build the ladder, like pulling from prior Roth contributions (penalty free) or other investments/savings.

like

This exactly.

I vote traditional, but keep in mind one benefit of a Roth is you can pull out the principle at any time penalty free.

like

Do a Roth IRA conversion ladder when you retire early and you’re good to go, as long as you can sustain yourself for 5 years. Should be feasible if you combo that strategy with traditional backdoor Roth IRAs, which will have been in your account way before you retire

like

I have a real life FIRE friend who retired at 51 and purposely contributed to a ROTH because they can use the principle anytime tax free. Their big concern when FIRE planning was having enough to cover them from 51-65 and this was one of their methods

like

If you do the math (assuming same tax rate), whether it’s taxed now (Roth) or later (traditional) makes no difference on total take home

like

This is exactly what we are trying to work through. Overall we’re confident we have enough money, but working through the strategy to start drawing on accounts without incurring penalties.

Related Posts

Are you entitled to parental leave benefits from Day 1 at Accenture? We will have a baby within the first year of me working at Accenture…trying to confirm whether I’ll be eligible for leave benefits.

like

In my late 40s and I'm ready to retire. Really tired of this rat race and stress. Am I alone?

like

I’m the one whose ex won’t pay for college - and I have an update. My ex texted me today that he and his wife are buying our son a car (!!) for Christmas. On the one hand, it’s one less expense for me. On the other hand, my ex won’t pay for college and he owes me at least $10K for previous medical expenses, but he can find money for a car - which is a “fun” expense that will get him brownie points with our son. Whatever - my son benefits, but talk about a “Disneyland Dad.” Ugh.

like

Hired as an undergrad. Moving up quickly (should be manager this year). What benefits would I get out of doing an MBA?

like

Are there any negatives to rolling over your 401k into an IRA while you still work at your current company? I’d prefer to have more flexibility in my investments via my Rollover IRA if I can

like

Any insight into Netflix’s in-house culture, compensation, and benefits?

like

Starting a new job and insurance cover lags by a month. Can pick up cobra ($$$$) through my old employer. Is short term health insurance worth the cost savings compared to COBRA? Trying to understand my options but, ugh, insurance

like

What is your ratio of your money is invested into cryptocurrency vs. in a traditional brokerage account in the market? Referring to expendable income after 401K/IRA contributions

like

I’m pregnant and have been at my job for a few months to qualify for the state family leave which is only 4 weeks. I’m wondering what others have done to prolong their maternity leave when starting a new job.

like

Anybody have any thoughts on Monticello Consulting Group? Benefits, PTO, etc.?

like

Those who just left ibm, what did yall do with your 401k?

like

Did you transfer your 401k from your ex-employer to your current employer? If not, what did you do with it? I’m so lost. It’s my first time switching jobs. I have money in my spending account too. How should I spend it in the last 2 weeks?

like

Ok sos I need to start retirement savings ASAP. 401k or Roth IRA?

like

Interviewed with Salesforce for Healthcare Solution Architect Role. I have around 13 years of CRM Functional, Techno- Functional experience with over 7 yoe in Salesforce and 6 yoe in Siebel. What Compensation figures should I be targeting?

like

Hello fishes, I currently work for one of Deloitte's Asian member firms and recently received an offer to move to their London office. Supply Chain offering, Senior Consultant level. 65k base + 5k benefits. I have 3.5 years of experience in the same offering with Deloitte. Can I push for 70k base?

like

I'm planning to give my 2 weeks, but am in the middle of using our Hyatt Legal plan benefits to create a will, which is scheduled to be finalized on 8/31. I already have my case number....

like

I’m eligible for 401k %match from my employer on aug 1 2021. The max total amount I could get from them for 2021 is ~$420. I plan on maxing out & my 401k has an aggressive strategy. Would you wait to contribute until later in the year in order to maximize the match, or invest early in the year for the compound interest gains? Am I wrong to think the latter?

Anyone know contact t info for KPMG pension? My client stopped getting statements and can’t find their info

like

EY High Deductible Health Plan vs Open Access Select (don’t have EY bowl access yet) I just started at the firm and am trying to pick my healthcare. I don’t really ever go to the Dr so I’m thinking of getting the High Deductible plan. My question is, what does it mean that it’s not a “national network (Is this a national network?: No)” but it’s “network coverage: see any licensed doctor”? Those seem to contradict. Also HSA vs FSA, as a healthy 26yo, which is right for me (High D only has HSA)

like

Additional Posts

Interviewing at Mckinsey. Need help with case interview prep. Any suggestions beside self-help books?

like

What’s the salary range for a product owner with a TS/SCI and 4 YOE of direct experience?

like

What’s the base salary range for a M role at Deloitte Advisory? R&LS to be specific

like

Recruiter: ideal candidate has 3-5 years of top consulting, banking, or PE experience. Also recruiter: max salary for the role is 90K, but we offer wlb.

likefunny

Reached out to the head of Firm A (who I had a last-round interview with a few weeks ago) to say that I received an offer from Firm B but still want to work for them. The head said that I'm one of the top candidates and that they want to schedule more time to talk in detail tomorrow. What could this mean?

like

Anyone here heard of McKinsey Academy? What is this team like? WLB? compensation? Was approached about a Client Delivery Associate role within the group.

funny

How do LMM/MM/UMM firms in Europe (London & EU) differ from NA in terms of WLB? Know it will vary by fund and city but would be curious for some data points - have anecdotally heard of fewer full sprint weekends, fewer 3/4 am nights, and more protected vacation. Know the opposite tends to be true in consulting - so is this a one off or true more broadly?

like

When you're just counting down the minutes to MDW... ⏰

like

ORD Gate arrival: 8:50. Entered Uber: 9:00. Arrived home: 9:25. Thai food delivery: 2 minutes later. Sometimes it all just comes up 🌹🌹🌹

like

Going to end up with ~99K EQM but will have over 15k in spend. Anyone have experience getting American to still give Exec Platinum?

like

Anyone at Cognizant care to share medical benefits info?

I understand that weddings are hard to plan and it’s hard to plan anything right now with COVID, but you telling me you think I’m going to go to your wedding just because it’s family and you think my 1 year old daughter will be there is freaking insane.....gosh I wish I could just tell her that we won’t be going but it’s my husband’s family and I’m done intervening. He gets to tell them in a month or so if it’s still bad

like

Has ghosting gotten worse during covid?

like

Would you start traveling again if it meant getting off the bench? Haven’t left my house in over a month but now I’m interviewing for a client across the country. My wife at home is pregnant.

like

Capgemini, Virtusa, Capco , Coforge - Can you please help me out which one should be joined without considering any difference in salary.

like

Ever been promoted at your firm while on a project and you have to be rolled off bc your billable rate is higher than what the client has budgeted? Or does your firm find this as an opportunity to renegotiate the SoW?

likefunny

Please no delay at ORD. Please no delay.... ☹️

like

Does EY pay for global entry renewal fee? If so how do I expense it?

like

Interviewing for a big tech marketing position. Any recommendations on books to read/ resources to prepare?

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

Get realtime notifications and see
what's happening in your industry
from the palm of your hand.

For account settings, visit Fishbowl on Desktop Browser or

General

Legal