Yes, a Roth 401K has higher limits, but I believe they are offset by the traditional 401K, are they not? So if one puts $15K into the 401K, then they could only put $3K (+ $6K if they are older) into the Roth 401K. Is this correct?
I like that the Roth 401K is post-tax, especially if one is younger. But it’s not as flexible as either a Roth IRA or a 401K, from my understanding. The Roth 401K must remain as it is, and cannot be converted down the road I think.
The main point is... contribute as much as you can afford, and start doing it last year!
Originally Posted by
Blueskies21
Generally good advice however Endeavor offers a Roth 401k as well.
As such if you're interested in a Roth you're better served to do it within the 401k with its associated higher contribution limits (18K vs 5,500).
If the 18k doesn't get you to 15% then go to an IRA and then after tax investing. As well, I don't believe the Roth 401k is subject to a max income limit, at some point you lose the ability to contribute to a normal Roth. (In case your spouse makes a lot of money)