Roth 401k?

Discussion in 'UPS Discussions' started by Brownslave688, Jan 19, 2012.

  1. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    Another posted reminded me of a question I have been meaning to ask for awhile. Is there a way to roll my previous conventional 401k withholdings into my Roth 401k. I asked my sups and HR about it when it first became avalible no one knew anything. I have confidence in your brilliant minds though. Help me Browncafe your my only hope!!!!
  2. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    One word--nope. The conventional is pre-tax while the Roth is after tax. I wish we could as I would do it in a second.

    HEFFERNAN Huge Member

    What's worse is that I have my Teamster 401K and I have my UPS 401K when I suped for 3 years. I can't add anything to my UPS401K or even move it as I'm still employed with the company. That one had the 3% match all in stock, but all i can do is watch it and allocate it to different funds.
  4. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    We have a driver in the same boat. She was a preload sup for a few years and had her mgt 401k. She has tried everything to be able to roll that in to her Teamster 401k but has been unable to. Yes, she is making money, but would be making more if she were able to combine the two.
  5. Jones

    Jones fILE A GRIEVE! Staff Member

    Actually it is allowed, but the plan is not required to offer that option and I don't believe that ours currently does although that may change in the future.
    I was initially a firm believer that Roth was clearly the way go to vs a traditional 401k at least for all future contributions, but this article makes some interesting points to the contrary. Just something to consider.
  6. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    I would gladly pay the taxes on it now to be able to roll it over.

    The big thing with the Roth for me is it gives me the peace of mind in knowing exactly how much I have. What you see is what you get. No need to worry about tax rates going up. It just makes it easier to plan IMHO.
  7. brownmonster

    brownmonster Man of Great Wisdom

    I see a better chance of a future Congress trying to tax or abolish Roth IRAs or 401Ks then tax rates going up. I'll stick with the traditional. My tax rate will be low when I retire.
  8. brett636

    brett636 Well-Known Member

    The point he is making is that when you look at a traditional 401k plan balance you must remember that 20% or more of that balance is technically owned by federal, state, and possibly local governments. When you look at a roth 401k balance 100% of that is yours including all growth. You may have a point that at sometime in the future there will be a much more cash strapped congress than what is occuring today, and going after Roth accounts could be a possibility, but I for one will cross that bridge if I ever reach it considering we don't know when or if that will occur. I have gone 100% roth and plan to stay that way through retirement even though it is still 30 or so years away for me.

    Jones- If you question the benefit of a roth versus a traditional 401k then please use this calculator to determine the benefit of both. According to my numbers my retirement income from my 401k savings will be 33% higher with a Roth versus a traditional. Go there and see it for yourself.

    Traditional vs. Roth 401(k) Calculator
  9. brownmonster

    brownmonster Man of Great Wisdom

    Read an article today in USA Today about this very subject. Most people estimate too high when figuring taxes in retirement. The effective tax rate for a person making 50 K a year is approx 5% as far as federal taxes are concerned. I figure total taxes to be less then 10% of my income in retirement.