Contribution options

Discussion in 'UPS Retirement Topics' started by clipperman, Sep 30, 2015.

  1. clipperman

    clipperman New Member

    I am currently at 15% deduct into my 401k,are there any advantages to splitting that between pre and post tax?
     
  2. The post tax (Roth) is tax free when you withdraw it.
     
  3. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Not really.
     
  4. Jones

    Jones fILE A GRIEVE! Staff Member

    Splitting it gives you some options in retirement if your tax situation changes. When taxes are higher you draw from the roth when they're lower you can draw from the traditional.
     
  5. Jackburton

    Jackburton Gone Fish'n

    Hedging bets, folks need to realize as well we will be paying taxes on our pension, in which case that traditional withdrawal might bump you up in a tax bracket, the ROTH won't.