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Xposted on the Foolish 401k board.

Hi Guys
I am researching the roth 401k which I can contribute to in 2008. I read about it and understand the tradeoffs between paying taxes now was defering them to later. I am making an assumption that future taxes will be the same as current taxes (I understand this is a big IF). What do you thing about the 4 stages below (think of them as where one is in life)?

1. Young & Low income
- Your tax bracket is low - pay the taxes now;
- Roth 401k
2. Young & High income
- No kids & no house
- Your tax bracket is high - defer the taxes;
- Trad. 401k
3. Middle age & High income
- You have dependents; You own house - interest deductions;
- All the above already lowers your tax bracket;
- Once the kids leave and you paid off the mortgage, your tax bracket will be high
- Roth 401k
4. Middle/Old age & High income
- No kids & no interest deductions
- Tax bracket is high
- Traditional 401k

Am I on the right track here?
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