Deferring taxes is generally preferrable unless you plan of retiring very soon. Mathematically, the amount you save by deferring taxes now can equal up to nearl

Deferring taxes is generally preferrable unless you plan of retiring very soon. Mathematically, the amount you save by deferring taxes now can equal up to nearly 20 years of earnings growth, or more at today's low interest and growth rates. With currently-taxed contributions you don't have to worry about future taxes...but you start off with a substantially smaller base. You also take the risk that future taxes won't be lower than they are now, or that even if they are higher that retirement withdrawals will not be subject to special taxation regimes.