Quote:
Originally Posted by wheelsup
I think it depends on what tax bracket you are in right now, when I started saving I think my total tax according to TurboTax was in the 5% range, I was in the lowest tax bracket out there. The year after it was around 10%. Stayed there for a while and now it's definitely higher. So now I contribute to the Traditional 401k but back then I was doing the Roth IRA exclusively. Made no sense to defer my already low tax bracket.
If however you are earning $60k+ right now it probably makes more sense to go the Taditional 401k route and defer your taxes. Most people won't be earning $60k+/year in retirement without a pension, and if you are you don't have to withdraw it, you can keep it in your account.
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keep in mind that today a retired couple can actually pull as much as 35k in retirement money and pay as little as 1500.00 bucks on it.
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