If your employer automatically enrolled you in a 401(k) plan at the beginning of this year, it’s time to take stock of your holdings.
The type of investment your company has chosen may or may not be advantageous to you.
“If you are under age 50, generally, the Roth [401(k)] is going to be better for you. It is going to generate more spendable income in retirement than the traditional tax treatment,” said Stuart Ritter, vice president and certified financial planner at T. Rowe Price.
“If you’re over age 50, the Roth is likely still better unless you expect your tax bracket to drop significantly in retirement."