cover of episode Financial Myth #4: A Traditional 401(k) is Better Than a Roth 401(k) When Saving for Retirement

Financial Myth #4: A Traditional 401(k) is Better Than a Roth 401(k) When Saving for Retirement

2020/1/7
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Stay Wealthy Retirement Podcast

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This chapter debunks the myth that a traditional 401(k) is always better than a Roth 401(k) for retirement savings. It explains the differences between pre-tax and after-tax contributions, the potential pitfalls of traditional 401(k)s, and the benefits of Roth 401(k)s, including tax-free withdrawals and no required minimum distributions.

Shownotes Transcript

When you contribute to retirement accounts, you typically have two options:

  • Contribute pre-tax dollars today, pay taxes in retirement when you withdraw (Traditional 401k/IRA)
  • Contribute after-tax dollars today, withdraw tax-free in retirement (Roth 401k/IRA)

Ask 100 people and 99 of them will likely choose option one.

A tax deduction certainly sounds better than no tax deduction.

I get it. I love tax deductions.

But I think the Roth 401(k) is actually the right decision for most retirement investors.

Tune in to today's episode to learn why!

For all the links and resources mentioned in this episode, visit www.youstaywealthy.com/60

DISCLAIMER: This podcast is for informational and entertainment purposes only and should not be relied upon as a basis for investment decisions. This podcast is not engaged in rendering legal, financial, or other professional services