What you are saying is that it is better to take the deduction now when tax rates are low and pay the higher rate in the future. Got it.How does this makes any sense?I agree, but it is better to front load the Roth and then switch to Trad later in life when income is likely to be higher due to promotions and raises.If you're goal is to retire early and you are contributing roughly equal amounts to taxable and traditional accounts then you would have stopped working before your traditional accounts got so big that its a problem.Just ask the forum members with multimillion dollar traditional accounts how their zero tax strategy is working out.
FWIW I would guess that they also considered traditional contributions.
Considering things is smart!
More money by deferring taxes and let it grow longer gives you more money versus the other way around.
12K versus 10K compounding over 10 years. Which one gives you more money? In both cases, the tax at retirement is zero.
And, what if someone is unemployed in the coming recession? The person may not have enough money to survive the recession by paying unnecessary taxes by Roth 401k.
It is not sunny all the time. I was unemployed for more than 1 year a few times.
KlangFool
Uncle Sam sends his thanks.
Statistics: Posted by Harmanic — Fri Jul 19, 2024 7:25 am