Just started my first job and have to set up my 401K. I am making $60K and expect that to increase by the time I retire. Should I do Roth 401K until I reach my expected retirement tax bracket? A mix of pre-tax and Roth?
Also, if I’ve already maxed my Roth IRA can I also do a Roth 401K?
Yes, you should be able to do a Roth IRA and Roth 401(k), both to their maxes. And that’s exactly what I would do. I think trying to guess your retirement tax bracket is a exercise in futility. Having everything Roth status insulates you against all future tax rate hikes as well as lets you take out huge sums at once in retirement (say to buy a house) without worrying about marginal tax rates.
But broad strokes, both are very good and it’s impossible to know ahead of time which will work better for you. If you want your IRA to be Roth and your 401(k) to be traditional, that would be totally fine too! The bigger issue is how much you put in (and keep buying and holding low fee index funds!)
What if they drop income taxes in the future?
If you end up in a lower tax bracket (due to lower withdrawals or changes in the tax law), then you would have been better off with the Traditional!