At what annual income would you go with a traditional 401K versus Roth 401K?

If you assumed tax rates will be the same as they are now? The typical question people ask is whether you expect to have a larger income after retirement than when you are working.

That's still includes a couple of oversimplifications. Because overall tax rates on the median income will likely rise. And the amount of inflation over the next several decades is unclear.

Bottom line you are ahead of the game if you save period. The biggest problem for most people is they simply don't save.

Quick question.

Do you mean 28% effective tax rate or tax bracket?

I don’t see a 28% bracket on the 2023 chart.

I don't really know so I spread mine around. I max the match out in my 401k and contribute to both a Roth and traditional IRA.

We do more traditional.

But when the markets take a dip, i up the percentage into the Roth. The easy tax free gain is too attractive.

When I was working, I did traditional since I was in a mid 20s tax bracket.

In retirement I can live on 120k..minus the 30k standard deduction..it keeps me in the 12% bracket.

I have no debt. Food for thought

Several good responses. By doing both, you will have tax diversification later allowing flexibility based on your future situation. Lots of variables make it difficult to know so hedge some both ways.

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Several good responses. By doing both, you will have tax diversification later allowing flexibility based on your future situation. Lots of variables make it difficult to know so hedge some both ways.

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Also one thing goes overlooked. By doing a Roth 401k now, you are limiting your options as you've locked in those taxes.

With a trad 401k, you can still convert it to Roth in the future when you want. Ideally you do this when your taxable income is lower (i.e. early retirement/pre SS), so you can convert at a lower tax rate than when you were working.