Roth 401k vs Roth IRA (account, investment, contribute, pay)

[palmera45]

I am in the lower end of the 28% federal tax bracket. I work for a major city, great benefits but it has some of the highest taxes in the nation (city and state as well).

[palmera45]

Contributing to a pension plan is lowering my taxes a little since it's a pre-tax contribution.

[Lowexpectations]

Originally Posted by palmera45

I am in the lower end of the 28% federal tax bracket. I work for a major city, great benefits but it has some of the highest taxes in the nation (city and state as well).

With gross income over 90k I would consider saving the tax now depending on your effective rate

[palmera45]

So you don't think taxes will be higher later? I am also single and have no kids.

[Lowexpectations]

Originally Posted by palmera45

So you don't think taxes will be higher later? I am also single and have no kids.

I don't know your effective tax rate. My wife and I make close to six figures each and our effective rate is 13%

[mathjak107]

It is going to depend on your average tax tate over your career. No one can answer that question.

If you are already earning big bucks in your career on entry vs a lower end worker the outcomes will be different.

[palmera45]

I see. I haven't calculated my effective tax rate yet. When I enrolled in my employer's 401k/457 plan, I was told that my tax rate is unlikely to be lower in the future if I receive a pension.

[palmera45]

However, I don't think my income will go much higher in the future either.

[palmera45]

Before getting too far off subject of my initial question, besides the 401k/457, should I open an IRA ithrough my employer even though I probably won't max out on all the accounts?

[palmera45]

Sorry if I am asking dumb questions, I don't have much experience with any of this since I just started working.