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Hi Guys, I am 5.5 years Java Developer and I have offer from JPMorgan Chase and Walmart .
Jpmc: 50% on current fixed + jpmc benefits Walmrat: 50% on current fixed + yearly bonus + stocks.
Please help me choose which will be better, mainly looking for brand value, work life balance and yearly hikes.
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Contribute to both. If you want to lower your tax bracket/taxable income, contribute up until your pre-tax salary is below $84,200 (essentially maxing out 401k pre-tax if possible, or up until you’re below $84k, and then any additional savings to Roth).
Additionally, you can contribute to Roth only if you expect your taxable income in retirement to be more than what it is right now, and don’t mind your current tax bracket. I personally do a mix of both (more Roth than pre-tax bc my pre-tax contributions won’t shift my tax bracket. Less taxes in retirement.)
I may not have explained it correctly, but the premise remains.
https://www.fool.com/retirement/2017/02/17/how-to-drop-into-a-lower-tax-bracket.aspx
contrary to the above, I'd do Roth. you'll pay tax now, but everything will be tax free. at the point you retire, somewhere around 70% of your 401k balance will be gains, not principal. pay tax on the principal now and unlock all that sweet tax free gain down the road. you can also contribute more, because you're contributing $19k after taxes vs. $19k pre-tax. if you're young, Roth is the way to go.