The Ultimate Traditional vs. Roth 401(k) Strategy
The Money with Katie Show
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The Benefits of a 12% Tax Rate
The whole effective tax rate plus no FICA taxes for traditional withdrawals thing tends to do quite a bit of heavy lifting for lessening our tax burden in retirement. In order for your effective tax rate to be twice as high the marginal tax brackets would have to skyrocket. Even still both fare better than the completely tax-free Roth withdrawal of about 82,000 dollars. The same is true for the 12% bracket for married filing jointly even if effective tax rates are double in 25 years their net income would be about 84k as opposed to the Roth withdrawal about 82k.
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