The Ultimate Traditional vs. Roth 401(k) Strategy
The Money with Katie Show
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How to Invest in a Roth 401k
A Roth account must dwarf the upfront tax savings from a traditional 401k. You don't pay taxes in your highest marginal tax bracket on money you withdraw. The first 10,000 of withdrawals is taxed at 10 percent and the next 30,000 or so is at 12 percent. Even though people always say that tax rates are gonna go up we are still comparing today's marginal aka the highest rates today to the future is effective remember the bottom up the lower tax rates.
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