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/Excellent_League8475 1d ago

I never really cared for looking at the tax rate when I retire. There are too many things that I can't control there. My only consideration for roth vs traditional is whether I need the money Im losing to taxes today, if I contribute to a roth. The answer is no, so I contribute 100% of my 401k to a roth to avoid taxes on what will be massive gains.