Originally Posted by
LeineLodge
Scambo's explanation was much better than mine.
The company DC money and your contributions both end up in a Fidelity account which has a ton of options for how you want to invest. You also have the option of making Roth contributions which are post tax. Some guys will go that route so they will have both pre/post tax $ available in retirement. Everyone's situation is different and a lot depends on your personal view of where tax rates will be in the future vs your likely tax bracket, etc.
That's always been one I can't figure out.. How can your tax rate ever be
higher when you're
retired? Seems like a Roth 401k exposes you to way more taxation now when you're making 6 figures, than the potential taxes on a straight 401k when you retire.