Opened up last years Turbo Tax.
Summary page says effective tax rate 2.94%.
And you definitely don't want to use "effective" tax rate for this choice.See what the already-referenced Traditional versus Roth wiki has to suggest in that case (note: link goes directly to the section where it is mentioned).
But note that it is your marginal tax rate, not bracket, that matters.
Unless you are very close to a saver's credit tier, the increased marginal tax rate due to that credit is often minimal. If you really want to dive into gory details, see the Saver's credit section of the t vs. R wiki.
If you can use Excel, the Personal finance toolbox can show you your marginal tax rates for any range of 401k contributions you would consider.
See Marginal Vs Effective Tax Rates And When To Use Each
Statistics: Posted by FiveK — Tue Aug 27, 2024 6:16 pm