Traditional 401k versus Roth

**Ima saver** · 02-22-2006, 09:44 AM

Re: Traditional 401k versus Roth

Neither my husband or I have ever worked any place that offered a 401k.

**Tree0164** · 02-23-2006, 05:30 AM

Re: Traditional 401k versus Roth

Good tool-for my husband it will be better for him to do the Roth 401k but his employer doens't offer it at this time.

**sweeps** · 02-27-2006, 06:27 AM

Re: Traditional 401k versus Roth

The question is what do you enter for the assumptions?

**jmjj215** · 02-27-2006, 07:21 PM

Re: Traditional 401k versus Roth

Oh bother Sweeps. Just assume a 12% return and forecast away! Sheesh.......

**CRFSaver** · 03-02-2006, 12:30 PM

Re: Traditional 401k versus Roth

I assumed a lower tax rate when I retired which is a pretty good assumption, a 8% return as that is what I have been averaging right now, a 5% return in retirement and I am in the highest tax braket already. I am better off in a traditional 401K.

**tagrims** · 03-04-2006, 01:08 PM

Re: Traditional 401k versus Roth

In a roth IRA do you get penalized if you sell a mutual fund and buy a different one?

For instance, I just invested $3,000 in Vanguard's Total Stock Market Index Fund, but say 20-30 years down the road I want to switch all the money that has been accumulated over to a Bond market fund do I have to pay taxes because I didn't keep it in the original holding?

**Ima saver** · 03-04-2006, 01:28 PM

Re: Traditional 401k versus Roth

No, you can roll over a roth ira to anything else. Let the mutual fund handle the roll over and don't take the cash out yourself. As long as you don't take the money out, you are ok. Just do a roll over. I started with a bank Ira, then rolled into a mutal fund called mutual shares, then rolled it into Vanguard 500. You made a wise choice.

**PRICEPLUS** · 03-10-2006, 06:03 AM

Re: Traditional 401k versus Roth

Roth is the way to go for me.

Traditional 401k versus Roth