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> Why are you comparing 401k and Roth? They are completely orthogonal concepts. Because the entire thesis of this thread is that it is better to contribute to
by tcoppi 10y ago
> Why are you comparing 401k and Roth? They are completely orthogonal concepts.
Because the entire thesis of this thread is that it is better to contribute to a 401k and other pretax accounts before contributing to a Roth under nearly all circumstances(other than at the beginning of your career) that don't involve massive tax raises in the future.
- hx87 10y agoRoth 401(k)s (and traditional IRAs) do exist, you know...
- tcoppi 10y agoFor taxation purposes, traditional tax-exempt IRAs are equivalent to 401(k)s, and Roth 401(k)s are equivalent to Roth IRAs. Whenever someone refers to contributing to one type of account or the other over another type of account, the ones that are equivalent are... equivalent(for taxation purposes).
- hx87 10y agoRight, so the correct classification is traditional and Roth, not 401(k) and Roth.