Originally Posted by
UALinIAH
It's not always that simple though. Our youngsters are more often than not better off putting their money in as Roth and taking the tax hit now. 20-30 years of growth tax free more often than not offsets the initial tax hit. Everyone should do your research or spend the $ to get advice on it. When you start getting close to retirement and see how much tax you're going to pay when you do start withdrawing (and the Medicare increase you'll pay) it can be eye opening lol. But these are 1st world problems thankfully.
That’s why you should do both. Max out the before tax contributions, then do after tax contributions immediately converted to Roth. This will give you Roth and non Roth dollars in retirement allowing you to manage your tax rate. Only downside is more RHA spill which will go away once we figure out the Market Based Cash Balance plan.