From a tax perspective, it seems like your marginal rate will be close to the same in retirement, so whether you put your money in Roth or traditional does not matter to your marginal tax RATE. That said, if you have a lot of money in taxable, making Roth contributions will allow you to put more money in tax protected accounts, reducing the tax drag on taxable dividends and interest. That is because every dollar you contribute to Roth belongs to you forever, along with the gains on the account. A regular 401k belongs partly to the government. As a result, it reduces the taxable balance and therefore reduces taxable dividends and interest.
Statistics: Posted by Harmanic — Wed Oct 15, 2025 7:24 pm — Replies 5 — Views 343