I’ve been contributing to my company’s 401k for the past 5 years and maxed my contributions in 2019.
I just found out we have a Roth 401k option.
Not eligible to contribute to a Roth IRA due to our income (>$300k combined married filing jointly)
Original plan was to do a Roth conversion on the 401k after we FI/RE, but I’m wondering if I should contribute to a Roth now since I have the option.
Our issue right now is that we will have a ton in our retirement accounts but are just now starting to build up our taxable accounts—so this is the limiting factor for when we can reach FIRE. We are about 6-8 years to that point.
Should we take the tax hit now and contribute to the Roth 401k so we have access to those contributions? Or stick with the traditional 401k to get the tax break now in the higher tax bracket?