Should You Invest Your 401(k) Contribution In Your Traditional 401(k) or Roth 401(k)?
The biggest difference between a Roth 401(k) and a traditional 401(k) is how and when you get a tax break. Thus, most advice on the Roth 401(k) vs. traditional 401(k) topic depends on the following question: Does the benefit of a tax-deductible contribution now, outweigh the benefit of tax-free withdrawals in retirement, after your account has grown?
Saving Just A Little More Can Make A Big Difference in Retirement
Often it's the little things in life that can make the biggest difference. That's true when it comes to saving for retirement. Putting just 1% more into a tax- advantaged retirement account like a 401(k), or an IRA could make a noticeable difference in your lifestyle in retirement.
How to Maintain Your Current Lifestyle In Retirement
Once you know where you are going, it becomes a lot easier to plan to get there, and to measure your progress along the way. When it comes to saving for retirement, set a course for maintaining your current lifestyle in retirement—and plan for your savings to provide 45% of your pre-retirement income.
Some retirement account rules have been relaxed as a result of both the Setting Every Community Up for Retirement Enhancement (SECURE) Act, signed into law in December 2019 and the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Washington’s massive stimulus effort to provide relief for families, individuals, small businesses, and major sectors of our economy impacted by the coronavirus outbreak.