What’s Better – a Traditional 401(k) or a Roth 401(k)?

Traditional 401(k) or a Roth 401(k)

Both a Traditional and Roth 401(k) definitely have their own place in your retirement savings and the decision to choose one over the other isn’t always straightforward. Given the uncertainty around future tax rates, let’s look at which one of the two options works out the best for your situation. In this analysis, we are going to make a few assumptions and run an analysis on both the type of accounts and see which one comes ahead.