Roth contributions are after tax but distributions in retirement are tax free.Contributions to a regular 401k are pretax, but distributions are taxable at ordinary income tax rates in retirement.If the tax rate now and in retirement are the same, the two are mathematically identical. Roth is better if your tax rate is low now, but likely to be higher in retirement. Regular 401k is better if your tax rate is high now but expected to be low in retirement.Of course if your 401k investments grow nicely over the years, you would rather they be in the Roth.Either way can work for you. But increasing your contributions is the best way to plan for retirement.
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