Roth makes sense if your current wages are lower than you hope

or think they will be when you retire and start taking distributions. You're taking your tax hit now as opposed to later(traditional 401k).

Edit: Also if you think taxes are going to be raised or lowered. That's another thing to consider and is totally a guess.
[Post edited by ElbertoHokie at 05/21/2021 09:29AM]

In response to this post by FfxStationHokie

Posted: 05/21/2021 at 09:28AM

401K vs Roth 401K is a no brainer? Go Roth 401K? (inside) -- FfxStationHokie 05/21/2021 09:17AM

Max the 401k, then fund the Roth as you are able... -- Hungry Joe 05/21/2021 4:36PM

It's highly likely you are better off deferring taxes in the present -- Synaesthesia 05/21/2021 11:47AM

SAVE SAVE SAVE, because tomorrow is never guaranteed -- darnellm 05/21/2021 11:22AM

If tomorrow isn't guaranteed, then shouldn't we spend, spend, spend? ** -- HokieNoVA 05/21/2021 11:35AM

No, I was mocking ** -- darnellm 05/21/2021 12:14PM

LoL, I read it that way too. ** -- TekkNerd 05/21/2021 11:57AM

Depends on future tax rates. It is a roll of the dice either way -- fordham 05/21/2021 11:19AM

Haven't been able to do a Roth is years - Stupid wage limits ... -- OXVT 05/21/2021 11:11AM

What about a Hagar 401K? ** -- HokieDan95 05/21/2021 10:15AM

I dunno, you really got me on that one. ** -- `lag 05/21/2021 10:24AM

They only offer it in Panama. ** -- Spud 05/21/2021 10:47AM

And they only offer it Right Now ** -- Tafkam Hokie 05/21/2021 10:57AM

It's good to have a Roth, if you can. There are limits on Roth... -- Spud 05/21/2021 09:59AM

Roth IRA and Roth 401K are completely separate ** -- Hokerer 05/21/2021 10:07AM

The only thing that makes sense is put it all in Dogecoin -- Happy Dog 05/21/2021 09:54AM

In a sense, it makes no difference.... -- `lag 05/21/2021 09:52AM

It only makes a difference if your tax rate later is different than now -- Tafkam Hokie 05/21/2021 10:08AM

All true, until they change the rules- for the common good ofc ** -- ColoVT82 05/21/2021 10:35AM

And some past presidents have brought that up. -- `lag 05/21/2021 10:44AM

We agree, just setting the starting point that .... -- `lag 05/21/2021 10:30AM

It's not 100% Roth, but that's where you should put your early money -- EDGEMAN 05/21/2021 09:40AM

You can't know the unknowable- split 50/50 -- One4VT 05/21/2021 09:34AM

Yep. Roth grows tax free with no tax consequences. Regular will cost you -- UTPr0sim 05/21/2021 09:30AM

Roth makes sense if your current wages are lower than you hope -- ElbertoHokie 05/21/2021 09:28AM

Also, since Roth is taxed now, you have in theory less money to invest -- Late 80s Hokie 05/21/2021 09:38AM

Roth makes sense if your current wages are lower than you hope

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