Do you have both traditional and Roth accounts within your employer’s 401(k)? If so, and you’re willing and able to pay taxes now — and you’d prefer not to pay them in retirement — consider an in-plan rollover. That is, your plan may allow you to transfer funds from your traditional 401(k) account into your Roth 401(k) account. Such rollovers can be a relatively quick way to move more savings to the Roth side, and they don’t count toward your annual 401(k) contribution limit. But the rollover amount is generally taxable at your ordinary income rate to the extent it consists of pretax funds. Contact us for help finding the right balance between traditional and Roth 401(k) retirement savings.
