Roth 401k
Why would you max out the pre-tax 401k instead of the Roth 401k? The contribution limits are the same and obviously Roth is after tax so allows you to contribute much more. Am I missing something?
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If you expect your tax burden to be higher when you're older = max out Roth
If you expect your tax burden to be lower when you're older = max out 401k
I usually do both
But if you can contribute much more today using Roth wouldn’t that lean towards Roth either way?
What do you mean by it allows you to contribute more?
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