With a million dollar portfolio you are doing great but it seems very unlikely that you will be in federal tax higher than 24% in retirement.1. Should I be putting money into a Roth 401(k)? I’m considering starting this year by directing 30% of my 401(k) contributions into a Roth 401(k). I have access to a Roth 401(k) through my employer’s plan.
After you retire you may be able to do Roth conversions in a lower tax bracket.
You could have things like an illness or getting laid off which forces you to retire sooner and with less money than hoped for if you keep working another 15 years.
By the time I was in my late 50s I had enough to retire which made getting up and going into work seem sort of pointless and I was not enjoying it so I retired earlier than I was I planning which helped keep me in a lower tax bracket.
I would stick with the deductible 401k but you might want to look to see if you can do a Mega Backdoor Roth.
https://www.bogleheads.org/wiki/Mega-backdoor_Roth
If you do not like the asset allocation of the 2040 fund you can use some other date. Target date funds are great in the right situation but you have a lot of money in taxable accounts so a three fund portfolio would be a better choice for you.2. Should I convert VFORX in my 401(k) to VTSAX, VTIAX, and VBTLX using my standard asset allocation? VFORX is starting to become more conservative.
With being in the 24% federal tax bracket your income may be too high to make deductible IRA contributions so be sure to double check on that.3. Anything else I should consider?
At 50 you may be able to make additional "catch up" 401k contributions but check the details on the most recent law changes.
Statistics: Posted by Watty — Mon Jan 05, 2026 8:42 am — Replies 3 — Views 328