This news isn't about cryptocurrency! It's about retirement planning. Imagine you have a lot of money saved for retirement in a 401(k). You can move it to a Roth account, but you'll pay taxes now. Should you do it?
- Moving your retirement money to a Roth account means paying taxes now, but you won't have to pay taxes later when you take the money out.
- If you wait to move it, your money will grow bigger, but you'll pay more taxes later.
- It's important to think about how much money you'll make in retirement and how much you'll pay in taxes.
| Scenario | Money Now | Money Later (after 4 years) |
|---|---|---|
| Move to Roth Now | $545,176 (after taxes) | $714,615 |
| Keep in 401(k) | $850,000 | $1,114,177 |
