[Diolla]

This is essentially what is 'confusing' me. I could put the 2360 in a traditional the leftover 1640 in a roth and the tax savings in my deferred comp therefore giving me more to invest. I would not spend the tax savings because I don't need to.

However I don't expect a fall in income at retirement so I am worried about having too much coming from deferred tax accounts. My AGI this year put me in the 15% tax bracket as I have alot of things taken from my check before taxes. I expect I will be in a 20% tax bracket in retirement since I will be single with no dependents and will not have the tax advantage of having health ins & healthcare taken out before taxes like now.

Right now I am leaning towards just putting the whole $4000 in a Roth.

Also the money would stay invested until I needed it since my pension will easily cover my day to day living needs. It is hard to say when that might be. I would probably invest in index funds.