I've gone back and forth on this one, so would like the help of some of you more intelligent folks.
My wife and I own a business, it's not a franchise, but run very much like one. Within their 401k plan, we have the option of a traditional or Roth 401k and can put money in by the percentage as we see fit. I've been contributing the majority, often all, of it to Roth. My mindset has been that, we don't know what taxes will be like 20-30 years from now, but they probably wouldn't be lower than they are right now. We are currently making around $600k per year. We could lower our tax burden by contributing to the regular 401k instead, but I have this feeling that this is the lowest tax period of time that we will get. The future is uncertain, and I know the current structure will be in place as long as Trump is in office, but I can't help think about the future. If a Democrat wins, taxes are likely to increase.
Is it smart to continue running everything into the Roth 401k or should I take the tax break with the regular 401k?
Submitted October 14, 2020 at 11:06PM by I_dunno_Joe https://ift.tt/2SXvgl4
