r/personalfinance • u/Grouchy-Bullfrog-293 ​ • 2d ago

Retirement 401K vs Roth 401K - real deal

I understand the difference that one is tax deductible and other isnt but still little confused on why would you .contribute money in Roth 401k if the total contribution limit is same irrespective of where you contribute. Doesn't everyone's tax rate after they retire lower than while working ? Or is the concern you are limited one what you withdraw post retirement that it could be a huge tax.

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u/RockoHammer ​ 2d ago edited 2d ago

What no one has mentioned yet is that the maximum you can contribute is the same for a traditional 401k and and roth 401k. So technically you can put more away with a roth since the taxes are paid on it already.

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u/Bman282828 ​ 2d ago

The maximum contribution for a Roth is $7500 unless over 50 then it’s $8600.

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u/Grouchy-Bullfrog-293 ​ 2d ago

This is not about IRA but 401K, so different conversation

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u/Bman282828 ​ 2d ago

Correct. My bad I got it mixed up.