Should I Contribute To My Roth 401k?

Flowchart aids in choosing between Roth 401(k) and traditional, focusing on tax and RMD implications.

Key Benefits

Future Tax Rate Expectations Assess clients' expectations of their future tax rates to determine if Roth 401(k) contributions would offer tax advantages during retirement.

Roth IRA Eligibility and Strategies Evaluate eligibility for a Roth IRA and potential benefits of integrating Roth 401(k) contributions with Roth IRA strategies, including backdoor contributions.

Employer Matching and RMD Considerations Discuss how employer matching contributions to 401(k) plans affect the choice, and consider the impact of Required Minimum Distributions on future financial planning.

Rollover Options and Additional Savings Explore the feasibility of future rollover options from a Roth 401(k) to a Roth IRA and additional savings opportunities through advanced strategies like backdoor Roth contributions.

About This Resource

This flowchart guides clients in deciding whether to contribute to a Roth 401(k) based on future tax rates, eligibility, employer matches, RMD implications, and strategies for additional Roth contributions. It simplifies complex retirement planning choices.

Financial Synergies
Wealth Advisors

Financial Synergies Wealth Advisors is a fee-only financial advisor and wealth management firm located in Houston, Texas. For over thirty-five, years we’ve been serving the financial needs of individuals, families, and businesses from around the world. When we take on new clients, they become part of our extended family, and in the past three decades we’ve developed multi-generational relationships with many of them.

Our primary goal is to simplify your financial life. Our Certified Financial Planner™ professionals and advisors combine investment management and holistic financial planning to provide total wealth management for our clients. Together, we’ll construct a financial game plan and investment strategy to meet your goals, and give you greater confidence in your future.