Roth 401(k) vs. Traditional 401(k): Which Saves You More? 💰
Here’s the difference (and how to choose) 👇
🟨 Traditional 401(k):
– Contributions are tax-deductible now
– You pay taxes later in retirement
🟪 Roth 401(k):
– Pay taxes now
– Withdraw tax-free in retirement
So… which one saves more?
💡 If you expect to be in a higher tax bracket later → Roth wins
💡 If you’re in a high bracket now and expect it to drop → Traditional might make sense
Long-term, Roth can save you thousands in retirement — and give you more flexibility.
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