Fund a Roth 401(k) if You’re in a Low Tax Bracket. Here’s Why.

If you’re not earning big bucks this year, consider saving money in a Roth 401(k) instead of a traditional 401(k).

Roth contributions make sense when your current tax rate is less than your rate in retirement.  That often applies to young workers who are earning entry-level salaries. But it can also be true of a middle-aged worker who has been out of work for part of the year or has switched to a lower-paid job like teaching. Or even an older executive who is working part time.