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WCI #359: Tax Deferred vs. Roth Contributions: A Deep Dive

White Coat Investor Podcast

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Optimal Retirement Contribution Decision-Making

This chapter provides guidance on optimal decision-making between Roth and tax-deferred contributions for retirement savings, discussing a rule of thumb based on peak earnings years while acknowledging exceptions like top tax bracket scenarios. Misconceptions regarding comparing current marginal tax rates, the value of deferring tax payments, and the optimal ratio of pre-tax to Roth assets are debunked, emphasizing individual circumstances and future tax considerations as key factors in choosing between the two options.

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