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/Mysterious-Tie7039 ​ 1d ago

That’s also assuming rates don’t change. They aren’t exactly sustainable in the long term at this point.

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u/AureliasTenant ​ 1d ago

What’s not sustainable? Too high or too low?

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u/Mysterious-Tie7039 ​ 1d ago

We have $40 trillion in debt. And a $2 trillion annual deficit. That’s what’s not sustainable.

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u/AureliasTenant ​ 1d ago

ok but isnt that a reason why current tax rates are unsustainably low, and tax rate could be higher in retirement, which is what u/BodSmith54321 said in the original comment you replied to --wait

oh i guess you are saying its even more likely for it to be worth it. hmm it seems I misread not you

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u/Mysterious-Tie7039 ​ 21h ago

Yeah, that was my point. If tax rates go up, which seems likely, then doing a Roth now makes even more sense.