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Roth 401K Through Employer

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    Roth 401K Through Employer

    I have just taken a new job at a company that offers a Roth 401k option.
    Currently 40 years old with 480k invested, all in previous (and wife's current) 401k plan. I have never had a Roth before.
    Should I invest my money in the Roth 401K? I plan on putting the yearly max into the account and hopefully some into the after tax once yearly limit is met.
    I understand the employer match goes into standard bucket, they match 10%, I am pretty excited about the match!

    I am also starting to think that I would like to possibly retire before 60. What would be good options as far as investing to start preparing to exit the workforce early and have access to money prior to turning 59.5?
    I have 2 previous employer 401K's and a SEP-IRA that I haven't touched in since leaving those jobs. All are doing fairly well, should I move them somewhere or leave them alone?
    I'll also get a small pension from a previous employer once I turn 65.

    If more information is needed just ask I'll be glad to answer.
    Thanks!!

    #2
    I will answer with what I am doing. I have decided to contribute all my money to a ROTH in my 457(b) and my IRA. I am doing this because I will have a state pension at 55 and rental income to include. This will always keep me in a higher tax bracket so I will want the majority of my retirement money to be in a ROTH account.
    Last edited by Atretes1; 10-06-2018, 05:08 PM.

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      #3
      tqf258,
      You have a great plan and match!
      It would be difficult to say whether the Roth option is better without knowing your current (and future) expected tax situation.

      The ability to make after tax contributions is awesome. Can you also do in service rollovers of your after tax contributions? That is another pathway to a Roth IRA.

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