Do you think there’s a possibility that you might have been putting too much money into your 401(k)? The answer for this question is a definite “yes!”

Do you fear having too much money when you die? Only 1% worry about this while some of us just think of how to save well enough for it. But it’s highly unlikely that you will save too much money for retirement.

When your nest egg reaches the level of a traditional 401(k), you might end up getting a higher tax bill.

Once you have retired, the taxes will take a huge chunk of your withdrawal when you are no longer receiving a paycheck. For example, let’s say you have filed as single, retired and are under the 15% federal income tax bracket. You will collect an average amount of your benefits from Social Security each month. Withdrawing $10,000 from your 401(k) will then only give you around $7,225 to 7,750.

By contrast, money in a Roth 401(k) in retirement can be withdrawn tax-free because you have already paid your contributions and taxes in a Roth. Withdrawing $10,000 gets you $10,000.

It’s better to scatter your funds, such as putting some into bonds, stocks and other assets. You can use the retirement accounts to hold these investments.

To stay financially flexible upon retirement by participating if your employer happens to offer tax-free funds in a Roth 401(k). Many employers offer this, so be sure to check into the options with your company.