Any downsides to having both 401k AND Roth 401k
So currently I have a 401k, I went ahead and added a Roth 401k while I'm eligible, beyond the fact I'll have to pay tax on the contributions now without the tax on withdrawal later in life you'd see on a regular 401k, are there any potential unconsidered negatives of keeping both?
Also, in retrospect are there any additional positives I may not have considered that make it more evidently positive to have both as well?
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When the mix is chosen correctly, you have the opportunity to (for example) use Roth to save 15% taxed money, then shift to pretax for 25% income. On retiring, you then take withdrawals from the pretax account only up to a taxable 15%, then Roth for the rest of your spending.
This is an oversimplification. In reality, you need to analyze where you are today, where you expect to be on retiring, and pay some attention every year in between.
No, there are no downsides to having both. In fact, it is very good to have both traditional and Roth plans so that you could plan your tax and tax free withdrawals and time them in the most beneficial way for you.
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