Do you have a Roth 401 (k) at work? Consider moving some of your traditional 401 (k) savings over to Roth, in a move known as a Roth conversion.
Please note that just like any direct contributions you make to your Roth 401 (k) any premium amounts converted will be included in your earnings and taxable.
"The participant would be responsible for taxes on the pretax principal and earnings, which could be a very large tax bill," said Jana M. Steele, Senior Vice President of Deposited Deposit at Callan.
This increase in income may be Dangerous for savers, in the worst case it can move you to a higher tax bracket.
Consider converting pretax dollars into pieces at a time to avoid a sharp increase in income and taxes, says Castle.
Make sure to consult your financial advisor or accountant before moving on.