The Personal Finance Podcast cover image

Should You Contribute to a Roth IRA or Pre-Tax as a High Earner? (By Tax Bracket!)

The Personal Finance Podcast

00:00

The Benefits of Contributing to a 401k

In a taxable account, the dividends and capital gains distributions that your investments kick off each year are actually taxed. In a 401k, that tax drag is actually eliminated, allowing faster accumulation of your nest egg. And then number three is you actually have tax rate arbitrage when you're contributing to a 401k.

Transcript
Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app