Depends on if you think your tax rates will be higher or lower than now. FWIW, I do a little of both.
Roth: invest post-tax money. Withdraws in retirement are tax free. You're betting that your taxes will be higher in the future.
Traditional: invest pre-tax money. Withdraws are considered income and are taxed. You're betting that your taxes will be lower in the future.
Employers usually match contributions to traditional accounts (never seen any match Roth). I've never seen any analysis if matches would offset any tax disadvantages.
Employers usually match contributions to traditional accounts (never seen any match Roth).
Employer matches must go to tax deferred, but IIRC, my last employer would match either Roth or traditional. They also had an after tax 401k with available automatic conversion to Roth (sometimes called a mega backdoor), which let me get a pretty good amount of Roth contributions.
Comments
Depends on if you think your tax rates will be higher or lower than now. FWIW, I do a little of both.
Roth: invest post-tax money. Withdraws in retirement are tax free. You're betting that your taxes will be higher in the future.
Traditional: invest pre-tax money. Withdraws are considered income and are taxed. You're betting that your taxes will be lower in the future.
Employers usually match contributions to traditional accounts (never seen any match Roth). I've never seen any analysis if matches would offset any tax disadvantages.
Employer matches must go to tax deferred, but IIRC, my last employer would match either Roth or traditional. They also had an after tax 401k with available automatic conversion to Roth (sometimes called a mega backdoor), which let me get a pretty good amount of Roth contributions.