Should You Convert a Traditional 401(k) into a Roth 401(k)?

If your company offers a Roth 401(k), you can convert your traditional 401(k) to pay lower taxes in retirement.

Post-it notes with "401(k) and "Roth 401(k)" written on them, with money and a calculator.
(Image credit: Getty Images)

You may be able to convert your traditional 401(k) into a Roth 401(k) if your employer offers both types of plans. It boils down to when you want to pay taxes on your retirement savings: while you are working or when you are retired.

Last year, the number of 401(k) millionaires grew by 20% to 422,000, according to research from Fidelity.  The average balance was over $1.5 million. 

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Tom Taulli
Contributing Writer,

Tom Taulli has been developing software since the 1980s when he was in high school.  He sold his applications to a variety of publications. In college, he started his first company, which focused on the development of e-learning systems. He would go on to create other companies as well, including that was sold to InfoSpace in 1996. Along the way, Tom has written columns for online publications such as Bloomberg, Forbes, Barron's and Kiplinger.  He has also written a variety of books, including Artificial Intelligence Basics:  A Non-Technical Introduction. He can be reached on Twitter at @ttaulli.