Isabel’s employer has recently announced that employees may convert traditional 401(k) plans to Roth 401(k) plans if they so desire. Isabel decides to investigate the option. She believes her tax bracket won’t change from her working years into her retirement. In addition, she’d like to have more take-home pay now. Should Isabel keep the traditional 401(k) plan or switch to a Roth 401k plan? Use Isabel’s calculations and your knowledge about these plans to explain your recommendation. two calculations of take-home pay on separate pieces of notebook paper, one for a traditional 401(k) and one for a Roth 401(k)
