Thread: PRAP
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Old 11-07-2024 | 08:32 AM
  #12  
tallpilot
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Joined: Dec 2011
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From: A320 FO
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Originally Posted by opheims
Concur on all the above...
Another factor is the time value of your contributed money.
$200 monthly contributed in January-June get more months of growth VS $100 contributed in January-December.
Time value of money is important. The other consideration is designating your contributions as post-tax. There are other strategies (back door conversion) to put money into the post tax bucket but maxing out your contributions increases the percentage of the whole that is post tax and is the easiest way to start building that pile. 23000/70000 per year or so.

There are too many variables in the pre or post tax calculation to definitively recommend one or the other. I prefer it primarily to avoid minimum distributions which will both reduce your principal balance and increase your tax liability in retirement.
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