Like many posts, more details are likely needed.
Is the choice:
Max deferred AND some Roth?
less than Max deferred, NO Roth?
Only Roth, no deferred?
(or something not covered above).
As far as future income, *I* interpreted that through the lens of "Roth can make sense when rate is lower (ie early in career), so sorta "if Roth makes sense its more likely sooner than later".
Somewhat off topic but I don't get the "deferred and invest the tax savings .." perspective.
401K tax is deferred -- a W2 income of 90,000 with say 15K into deferred is (for the most part) now a 75,000 W2 income
and all expense and taxes still need to be paid after that. The marginal rate on those 15K dollars doesn't help pay the bills. I have always viewed 401 contributions more like "money I never made" as it relates to net pay and cash flow.
Or maybe I'm missing something.
Is the choice:
Max deferred AND some Roth?
less than Max deferred, NO Roth?
Only Roth, no deferred?
(or something not covered above).
As far as future income, *I* interpreted that through the lens of "Roth can make sense when rate is lower (ie early in career), so sorta "if Roth makes sense its more likely sooner than later".
Somewhat off topic but I don't get the "deferred and invest the tax savings .." perspective.
401K tax is deferred -- a W2 income of 90,000 with say 15K into deferred is (for the most part) now a 75,000 W2 income
and all expense and taxes still need to be paid after that. The marginal rate on those 15K dollars doesn't help pay the bills. I have always viewed 401 contributions more like "money I never made" as it relates to net pay and cash flow.
Or maybe I'm missing something.
Statistics: Posted by bradpevans — Wed Dec 18, 2024 11:24 am — Replies 43 — Views 1884