re: Roth IRA & 401k tax strategy question

quote:

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Would it make sense to segregate the assets likely to generate a lower tax liability in the taxable 401K while putting the assets likely to generate a higher tax liability (if they were in a taxable account) instead in the tax free Roth IRA?

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Yes although there could be long stretches of time where large may outperform small, growth may outperform value, fixed income may outperform equity, etc. All you can go by is current tax code and what you are saying could make sense and if you want to change the asset composition within the accounts later you can do so with no tax impact. I wouldn't be concerned about rumblings to limit tax advantaged accounts as when or if it would happen it would be at very high dollar amounts. Besides, we are already limited by the max one can contribute today.