Tag: Rothification
One can make a strong case for getting rid of the Roth version of both 401(k)s and IRAs. While having two forms of retirement saving is lovely for young professionals who know their tax rates will be higher in the future than today, this opportunity is swamped by the mischief they create. Let’s look at…
Simple model suggests more saving, but real world frictions likely to produce less saving. For the record, we would not be discussing shifting from traditional to Roth 401(k)s except that Congress is looking for additional revenue to offset its proposed tax cuts over the next 10 years, the timeframe used for considering legislation. As background,…
