Comparing retirement savings options – what you need to know about your 401(k)

Posted at 11:40 AM, Jul 06, 2018
and last updated 2018-07-06 12:11:08-04

401 (k) plans are one of the most popular ways to save for retirement, but you may not be getting the most out of your plan.

News 3 got some advice from financial adviser Michael Mason of Mason and Associates so that you can make the most out of your money.

The first step is knowing your options.

With a traditional 401(k) you pay the taxes when you withdraw your money.  With a Roth 401(k) the money is taxed up front.

Which one is better depends on your financial situation and whether you can expect to be making more money now or when you retire.  In general, though, Mason says the Roth 401(k) may be a better option for many people because of the low tax brackets we have right now.

"Especially those just entering the work force [and] almost everybody in the military, given the option I would be doing Roth IRA and Roth TSP, everybody throughout the ranks I would be doing that," said Mason.

Watch his interview to hear what else he had to say about saving for retirement.