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Level 3
posted Jul 26, 2023 4:47:28 PM

401K vs 401K Roth

I have a 401K and i am probably four year away from retirement. does it make sense to move my 401k to a 401k Roth if i can afford having paying for the tax now?

0 2 1640
2 Replies
Expert Alumni
Jul 26, 2023 4:51:59 PM

Hi ro-solano, thank you for the question!

 

There are definitely considerations to convert from traditional to a Roth.  Paying the tax now while you have the funds is a major consideration.  Unfortunately, this is a financial planning question rather than a tax question.

 

Here is a great resource as you consider the conversion, https://turbotax.intuit.com/tax-tips/investments-and-taxes/now-everyone-can-convert-to-a-roth/L4NEqOEla.

 

I hope this information is helpful!

Connie

Expert Alumni
Jul 26, 2023 4:52:07 PM

Hi There:

 

If you think that you will be in a higher tax bracket when you retire. Then it makes sense to pay taxes now at the lower bracket. However, most people enter a lower tax bracket upon retirement, but you might be the exception to the rule.