Is It Time to Rethink Our 401(k) Strategy with $1.6 Million Saved at 62?
Wednesday, 11 September 2024, 11:00
Assessing Our 401(k) Strategy with $1.6 Million in Savings
As individuals approach retirement with significant assets, such as $1.6 million saved at age 62, it becomes essential to evaluate whether to continue contributing to a traditional 401(k) or consider switching to a Roth strategy.
Benefits of Switching to a Roth
- Tax-Free Growth: Roth accounts offer the advantage of tax-free withdrawals in retirement.
- Tax Planning: Individuals can manage their tax brackets by converting funds.
Factors to Consider
- Current Income Level: Higher income during peak career years may influence the benefit of a Roth.
- Future Tax Legislation: Consider potential changes in tax law that could impact retirement savings.
Conclusion: Evaluating Financial Goals
Ultimately, determining whether to rethink a 401(k) strategy when saving $1.6 million at 62 involves careful consideration of both personal financial goals and the broader economic landscape.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.