The Ultimate Traditional vs. Roth 401(k) Strategy
The Money with Katie Show
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The Importance of a Traditional 401k and Investing Tax Savings
In the other scenario it's relatively simple because our 401k value is still the same. We just don't have that bonus account that was funded by the tax savings. If we had a Roth 401k worth the same two million based on the same contributions and returns our 4% withdrawal would only be 82,142 dollars but tax-free. The 12% marginal tax bracket is probably a case where the outcome is going to be such a toss-up that Roth all across the board might make more sense since other major factors changing could tip the scales in its favor.
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