Want to do a sanity check. I’m making $110K and single. Right now max 401K, 50/50 traditional/Roth split. If I know I’ll be in school next year and will only work 6 months next year, should I aim to maximize Roth *next year* ? And therefore, maximize traditional this year? Thoughts? Thansk!

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How long will you be in school? If your income is going to be low for a few years, you should be contributing to traditional now if your 401k allows for Roth 401k conversion. You could then convert the money to Roth at a lower tax rate than your traditional contribution deduction.

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I’ll be in school for 2-3 years. This is exactly what I was thinking: to contribute to traditional now
And then convert to Roth.

If you can afford it, yes I think it makes sense.

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I would factor in what you think the tax rates will be at retirement and how much you plan to withdraw as taxable income at retirement to make that decision. If you plan to be spending alot of money at retirement you might be better off maximizing your ROTH to enjoy tax free withdraws. If you plan to retire frugally then the traditional with pretax dollars now would be better. I also like the flexibility of the ROTH as a last resort emergency fund being able to take out the money you put in penalty free.... which could also be used as a tool for an early retirement.

Time to get out your crystal ball.

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