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Posted on 2/11/13 at 11:06 am to CQQ
Im saying its rather complex and highly individualized.
If you think that you will be paying a higher tax rate in retirement than you are paying now, then the Roth 401k is a godsend.
It is good for diversifying your tax exposure though either way.
Remember, you are paying 25% on the money you are contributing to the Roth, vs being able to deduct that money by contributing to the traditional 401k.
I am personally a big fan of Roths...but that is me.
If you think that you will be paying a higher tax rate in retirement than you are paying now, then the Roth 401k is a godsend.
It is good for diversifying your tax exposure though either way.
Remember, you are paying 25% on the money you are contributing to the Roth, vs being able to deduct that money by contributing to the traditional 401k.
I am personally a big fan of Roths...but that is me.
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