Am I stupid for doing a Roth 401(k) instead of a regular 401k during my BigLaw stint? I'm risk-averse and just love the idea of never having to pax taxes on whatever grows in that account.

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You’re not stupid but unless you’re making partner (in which case you’ll be wealthy enough for it to not matter much) chances are your income/tax rate will be lower when you’re taking money out of 401k vs now, so personally I’d be avoiding taxes now and not later.

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This is my main argument for agreeing with you. I do not anticipate making partner and expect to get out, and likely earn less, long before withdrawals kick in.

I do the same thing. I think it is a more complicated question than simply whether your tax rate will be higher when you take it out — you also have to consider that the taxable amount will be higher at withdrawal if it is pre-tax due to growth (though the impact of that depends on how long you will be invested). Plus, there is no way to know what tax rates will be in the future—they have been higher historically. Despite all of that, I got comfortable on the basis that even if it is less tax efficient overall, I know I can easily afford the hit now, I have no idea what my circumstances will be in the future.

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This is essentially my reasoning. I'd save maybe a couple grand right now by going traditional. If I get 20k growth out of this (which I hope to in 30+ years) 10% income tax would break even. Granted those are future (i.e. cheaper) dollars, but a bit more growth and/or a higher rate and the point still stands.

I can afford to max out Roth 401k and IRAs right now, so I'm gonna.

Someone who understands the math better is welcome to correct me.

This is a good question. I split my 401k evenly between Roth and traditional. I figure that’ll give me some flexibility in retirement to assess when/if/how much to take out of either account.

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You want to lower your taxable income as much as possible right now

Do both

If you’re pretty young that’s also points in favor of Roth. Lots of tax benefit in tax-free growth from something you invested in your 20s vs. 40s

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