When considering whether traditional 401(k) deferrals or Roth 401(k) contributions are right for you, you need to weigh several factors. Among them:

• Your current age
• Your expected retirement age
• Your current annual 401(k) contribution
• Your current tax bracket
• Your expected tax bracket in retirement

Some of these factors require some educated guesswork on your part. The more years you are from retirement, the more you will need to speculate on what the future will hold.

While everyone’s circumstances are different, here are some factors you might want to consider in your decision making:

• Generally, the younger you are and the lower your tax bracket, the more beneficial Roth 401(k) contributions would be. Reason: The tax on your contributions would be small and any tax-free earnings would accumulate longer. You may end up with a larger after-tax accumulation when you retire (with all other factors, such as investment returns, being equal).
• If you expect to be in a low tax bracket in retirement so that you will pay little or no tax, making traditional pretax contributions now may make more sense and result in a higher after-tax balance at retirement.
• Even if you are not able to contribute to a Roth IRA now due to the tax law’s income limits, you can make Roth 401(k) contributions, if doing so is otherwise favorable to you.
• If you currently make after-tax contributions to your plan, making Roth 401(k) contributions instead may benefit you more.
• If you maintain your contribution percentage and elect Roth contributions, your paycheck will be lower due to the tax withheld on those contributions.

Before making any decision, though, you should consult with a tax advisor who can help you look at your specific situation and determine which route — traditional deferrals or Roth contributions — is best for you.

My new Roth option has inspired me to reconsider my path to retirement.