No. of Recommendations: 0
My work just started offering a Roth 410k. I would like to solicit the group's thought on which might be better.

Age: 31
Wife(SAHM) & 2 kids (ages 1 & 3)
Debt: Mortgage only
Plan: Max out 401k contributions regardless which method. Employer will match the same regardless.

I am not eligible for a Roth IRA.

We LBYM so the difference in take home pay will not affect our standard of living.

I am not sure what my tax rate will be when I retire, but I believe I will be able to retire by 50 w/ $3 mill and live off the interest/dividends. Based on 4% return, I would expect to still be in high tax bracket (again a guestimate).

I am leaning towards the Roth 401k as I like the long-term ability to grow my investments tax free.

However, the pre-tax option saves me about $5k in taxes a year (15k x 33%, simple estimated math-don't flame me for the lack of accuracy). That 5k if reinvested in after-tax account would also grow.

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