The Ultimate Traditional vs. Roth 401(k) Strategy
The Money with Katie Show
00:00
The Importance of Investing in a Traditional 401k Plan
The main advantage to a traditional account is that it's gonna lower your tax burden now. When you invest in the traditional 401k you then have to turn around and invest the tax savings aka the $5,400 that we spoke about a minute ago. Roth contributions are taxed at your highest marginal tax rate traditional withdrawals later in life aretaxed at your effective tax rate.
Transcript
Play full episode
