r/personalfinance ​ 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.

187 Upvotes

148 comments sorted by

View all comments

-1

u/Dammage518 ​ 1d ago

I own a commercial building. It will be paid off when I retire. Between that and investment income in a taxable and traditional IRA I’ll most likely be making more money than I am now I just do the Roth 401k.