Andrew wrote:
- quote -

Well, it starts with a peak at
http://www.fairmark.com/refrence/index.htm for you to see what bracket
you are in now, and to plan for retirement.
There are a number of variable for you to ponder: Current tax bracket,
bracket at retirement due to withdrawals from the 401(k) and other
income, Social Security income and whether you are subject to having it
taxed, married vs single, and any other income you might have upon retiring.
You offer no numbers, so I'll guess the 401(k) is approximately $750K.
In which case, the 4% withdrawal rule (see other posts here and at
m.i.f.p for further details on this) means a withdrawal of about $30,000
per year. This may put you right in the Social Security phantom rate
bubble I discussed at http://www.joetaxpayer.com/ss.html some time back.
If your 401(k) is much higher (than my guess) you may already be beyond
that phantom rate bubble, and unable to avoid it, except by delaying SS
benefits, doing the Roth 401(k) while you can, and converting some of
the 401(k) first to an IRA and then to a Roth upon retiring.
There is no definite answer without some hard numbers.
JOE

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Anyone have opinions one way or the other here? My large company as of
today is offering a Roth 401K. I am within striking distance (1-5 years
perhaps?) of retirement, and have funded my regular 401K to the max over the
last quarter century.

But now I am in a quandary as to whether to 'sign up' for the Roth 401K, or
simply keep making 'regular' 401K contributions in 2008.

A pointer to a calculator or reference on the web is also welcomed, as is of
course opinions here in the NG.

Thanks and happy new year!

--
----------------------------- Regards -

- Andrew

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >