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The Ultimate Traditional vs. Roth 401(k) Strategy

The Money with Katie Show

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How to Invest in a Traditional 401k

If you invest in a traditional 401k and you capture the tax savings by investing that amount of money saved somewhere else you fare better than if you had just contributed the amount to a Roth 401k. So my ultimate recommendation to totally bone the system leave the IRS in the dust is to invest the tax savings in a Roth IRA or taxable brokerage account. Remember withdrawals and retirement are taxed like ordinary income except you no longer pay a payroll tax.

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