[USER]

Roth 401k
My husband is retired and receives a pension of $100,000. He is starting a full time job making the same amount, bringing his annual income to $200,000. I make a similar amount.

I still find Roth options extremely confusing. We both have 403b and 457 plans, I have an IRA and he has an IRA rollover. Can he choose a Roth 401k option with his new company?

Are there income limits for a Roth option through an employer?

Please clarify Roth income limits when choosing an employee sponsored retirement plan.

Thank you!

[Ellie]

The couple of questions to consider …
1. Is he able to max out his 401k contributions?
2. If yes, you may want to consider a Roth 401k.

That is post-tax money, meaning that his paycheck will be lower (contributions to a regular 401k lowers your taxable income.)

The benefit of contributing post-tax is that you are then not taxed when you withdraw from the Roth.

Having a mix of tax-free and taxable accounts could give you flexibility when you withdraw in retirement.

[Nicole]

Roth 401K has the same rules as a traditional 401k for wage wise. The only thing you probably would have to worry about is if the company doesn’t qualify for Safe Harbor being high income which will limit the max amount you can contribute.

[Juliett]

At your income level, I’d be doing traditional …. Roth makes no sense for you guys.

[Jay]

No income limits to
Roth 401k

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