Setting up 401(k) – Just Started FT, Looking for Feedback
Hey everyone,
Just started my full-time role making ~$80K/year (based in Massachusetts), and I’m working through my 401(k) elections. I’ve set my contribution to 6% to take full advantage of the company match (they do $0.75 on the dollar up to 6%).
I’m currently debating between:
- 6% Roth 401(k)
- Or splitting 3% Roth / 3% Traditional 401(k)
Here’s what I’m thinking:
- At 22, Roth seems like a strong long-term move since I’m likely in one of the lowest tax brackets I’ll ever be in. Tax-free compounding over 40+ years is hard to beat.
- That said, I understand the value in tax diversification — especially if I’m unsure what future rates will look like or if I just want to slightly ease the tax hit now.
Other relevant info:
- I’m also planning to open and fund a Roth IRA separately.
Would love to hear from people who’ve been in a similar spot — especially those who split contributions early on. Was it worth it? Or do you wish you had gone all-in on Roth?
Appreciate any thoughts.
Go all in Roth. Your company’s match will be in traditional so you’ll already still be split. You’ll probably still want to convert that once you have the chance. I’d do a Roth IRA too. You’re at a low tax bracket. I’ve done all Roth and converted to Roth when applicable. I am 29 and have $300k in Roth. I would just do that never need to think about tax with it
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