2. Quit Saving in a Traditional 401(K) and Start Using a Roth 401(K) or a Roth IRA Instead
It’s very likely that you’ll retire in a higher tax bracket. Traditional 401(k)s and IRAs work well because they’re based on the idea that you will retire in a lower tax bracket. Now ask yourself why you should continue saving through them when that won’t be the case anymore, probably?
You should not only roll your savings to their Roth equivalents but you should stop saving in traditional plans altogether. The math just doesn’t add up and you’ll end up losing more money in the long run.
Does that mean you’ll have to fear Biden’s changes? No, it just means that as with every policy, you have to pick the most advantageous way to tackle it!
