All other things being equal, a dollar in Roth is always worth more than a dollar in taxable.
What makes things not equal? You cited fours cons.
The third is relevant and only you know how likely that might be and what other options you might have.
As for the fourth, at least my experience has been that the same options exist whether pre-tax 401k or Roth 401k. My 401k was managed by Fidelity and at the first level, the account positions were all aggregated regardless of source of funds (and that was more than pre-tax or Roth as there was also employee contribution and employer match distinctions). The positions by source of funds were available when needed but for most routine management of the 401k were not needed.
What makes things not equal? You cited fours cons.
The first two are not relevant. You're paying those taxes at that marginal rate whether the dollar goes to taxable or Roth.Cons:
No upfront tax deduction (higher current tax bill)
Paying taxes now at a high marginal rate
Could reduce flexibility if cash flow is tight
Employer plan may have limited Roth investment options
The third is relevant and only you know how likely that might be and what other options you might have.
As for the fourth, at least my experience has been that the same options exist whether pre-tax 401k or Roth 401k. My 401k was managed by Fidelity and at the first level, the account positions were all aggregated regardless of source of funds (and that was more than pre-tax or Roth as there was also employee contribution and employer match distinctions). The positions by source of funds were available when needed but for most routine management of the 401k were not needed.
Statistics: Posted by lstone19 — Tue Jan 13, 2026 10:02 am — Replies 18 — Views 1027