What are the pros and cons of the Roth 401k?

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https://letmegooglethat.com/?q=roth+401k+pros+and+cons

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It simply boils down to one main factor and then a supplementary consideration imo:

1) Current vs future taxation rates with respect to what drawdown/NW you are anticipating having at retirement. (High bracket now -> low tax bracket in retirement, traditional 401(k). Low bracket now -> high tax bracket in retirement, do Roth 401(k))

*Overlooked but important one: Estate planning. If you plan to leave your 401(k) account to your heirs, a Roth 401(k) can be a better choice because your beneficiaries won't have to pay taxes on the distributions they receive.

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Roth vs traditional is really a thematic discussion - the same pros and cons apply to IRAs as well.

Paying taxes now will probably be best for you, since Professional Services folks tens to be higher earners and might well be in a higher tax bracket in retirement. This is a pro for the Roth 401k.

Those post tax contributions will take a bigger chunk out of your budget, though, so it can be a harder pill to swallow each month.

There's also the issue of what you can do with the money - if you want to retire early or be more liquid in general, putting your cash in a retirement account is putting it in money jail. There are ways to take a loan from it and pay yourself the interest, but it isn't quite as free as just selling stock from your taxable brokerage. As you grow and mature, you'll want money on both sides of the retirement fence.

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