Contribution options

[clipperman]

I am currently at 15% deduct into my 401k,are there any advantages to splitting that between pre and post tax?

 

[IVE GOTTA PACKAGE 4U]

The post tax (Roth) is tax free when you withdraw it.

 

[UpstateNYUPSer(Ret)]

Not really.

 

[Jones]

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.

 

[Jackburton]

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.

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.