I recently relocated from California to a state with zero income-tax. While in California, it did not make any sense to save funds in a Roth 401k due to my 9.3% state income tax bracket.
Now that I have moved, I'm thinking that the Roth 401k might be a good option as it is likely that my future tax rate will be higher (will likely eventually settle in location with state income tax.)
For complete picture, I am 30 years old and not married, income of $150k. I max out my 401k, IRA, etc. Not a homeowner, drive a shitty 10+ year old car, live in a very affordable apartment, pretty frugal overall. I expect that I'll be married in about two years and household income will be somewhere $250-300k, so we will get hit with "marriage penalty." I don't have any debts, but wife will probably still have around $100k of student loans to pay back.
My limited thoughts make me think that the Roth 401k makes sense, but would like to gather input on making the switch.
Submitted May 21, 2017 at 12:32AM by umich2011 http://ift.tt/2rDL7q1
