I’ve been contributing to a roth IRA and a roth 401k these past few years because I thought roth was supposed to be better than traditional if you expected your income to get higher over time (because of raises, promotions, better jobs, etc.). I started out in a really horrible paying part time job, then had a horrible paying full time job, and then got a better paying job, and would hope in the future I’d be making more but really can’t know (actually got laid off and have been unemployed for most of this year).
I was just reading about roth vs. traditional, and it sounds like I misunderstood and the correct way to choose is by how much you expect your income to be when you are retired. Roth is only better if you expect to have a higher income in retirement. I assume when I retire I’d just be getting social security and distributions from my retirement accounts, so my income would be lower than if I was working full time. So I really should have been putting my money into a traditional IRA/401k?
Just confused and feel so stupid now and don't know if I screwed up or if I'm overthinking it (I tend to agonize and get anxiety over things involving money). Does it not matter too much as long as I'm saving for retirement?
Submitted December 04, 2018 at 09:20PM by Hit88MilesPerHour https://ift.tt/2BSaiwi
