When Should You Contribute To A Roth 401K?

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   David G. Pipes, CLU®, RICP®

   Business Development Officer, T.D. McNeil Insurance Services, Fresno, California

   The Roth IRA is the retirement investment of choice when you think that your marginal tax bracket will be higher when you retire than it is now. The Roth IRA is funded with after tax income. The distributions from the Roth IRA (subject to some requirements) are income tax free. Few people appreciate that during the working years they are frequently in a very low tax bracket because of deductible expenses and that when they retire those deductions don’t necessarily continue.

   Answered on February 20, 2015

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