Originally Posted by luv757

Sorry EWR it took so long to reply,
I just changed my contribution rate of the traditional 401k to 0% and started contributing to the Roth by changing the contribution rate from 0% to 5% (since upped to 8%). When I look at my 401k mix I still have a the funds contributed to the traditional as traditional. I will pay taxes on it when I withdraw from that account. I figure as an F/O it is better to pay the taxes now at the lower rate. Later, as my tax bracket goes up, I will likely switch back to the traditional for tax purposes. I did all this online at the Schwab plan page. Just login to view your account and you can do all your account management right from that homepage. You can also set up automatic increases yearly by any percentage up to a maximum percentage at the beginning of any month. Example, every year on June 1 you can increase your contribution by 1% until you hit 15%.