When you contribute to retirement accounts, you typically have two options:
- Contribute pre-tax dollars today, pay taxes in retirement when you withdraw (Traditional 401k/IRA)
- Contribute after-tax dollars today, withdraw tax-free in retirement (Roth 401k/IRA)
Ask 100 people and 99 of them will likely choose option one every time.
A tax deduction certainly sounds better than no tax deduction.
I get it. I love tax deductions.
But I think the Roth 401(k) is actually the right decision for most retirement investors.
Tune in to today’s episode to learn why.