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.
How to Listen to Today’s Episode:
- Stop Abbreviating the Year 2020 [USA Today]
- Traditional 401(k) vs Roth 401(k) [Define Financial Blog]
- 401(k) Contribution Limit Increases in 2020 [IRS]
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Retirement Planning Strategies in Plain English
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