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Author: DolonAltekar Three stars, 500 posts SC1 Red Motley Fool One Everlasting Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75377  
Subject: Re: Roth 401k vs. traditional 401k Date: 3/17/2014 11:09 AM
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Sounds like you got it about right.

The roth is a great deal, because you never have to pay taxes on those earnings in the future.

Also, $1000 added to a Roth is equivalent to $1000 * your tax rate added to a traditional 401K, so the $17500 limit allows you to have much more spendable money at retirement. The $1000 put in the Roth costs you more up front, but you get more at the end.

What I mean is that if you have 1M in a Roth and in a traditional 401K, at retirement, with the Roth, you get to keep the 1M. With traditional, you get to pay taxes on that money.
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