Well I didn’t exactly get to my follow up post as quickly as I would have liked to, but here goes. Well I ended up sending the form in and leaving my contribution at 14%. According to my calculations I had figured this would cost me an extra $124 out of every paycheck. Now I have our budget strung pretty tight as it is, but when it comes to saving for retirement I tend to act irresponsible like this and splurge on my retirement. I’ve done this a number of times in the past and I’ve never had cash flow problems yet, somehow there always seems to be enough money left over to pay the bills.

The good news though is that by switching to a Roth 401k and leaving my contribution percentage the same it didn’t cost me the extra $124, in fact it worked out being only $67. I guess the extra deductions for my wife and kid lowered my federal withholding percentage from my check lower than what I had guessed at in my example. This has me actually contemplating upping my percentage a few more points as I was already ready to bite the bullet on the $124 per month why not up my percentage and take that money out. But before I make that decision I want to get a better grasp on my overall financial picture and goals before I make any more changes to my current structure.

Hopefully I’ll get a few posts out tonight and make some progress on this front.