Should I Contribute To My Roth 401(K)?

Roth 401(k)s have become an increasingly popular alternative to traditional 401(k)s, allowing participants to make after-tax salary deferrals to their employer plans.

Many investors may have the opportunity to contribute to a designated Roth account in their 401(k), but are uncertain about the best savings strategy for their personal circumstances.

This flowchart helps guide you through a series of considerations that will inform your decision whether to contribute to a Roth 401(k), and covers:

• Future tax rate expectations
• Roth IRA eligibility
• Employer matching considerations
• RMDs and future rollover options
• Additional savings opportunities through backdoor Roth contributions