This Is Why I Recommend Roth Retirement Accounts

Support our Sponsors:
Member FDIC. Laurel Road is a brand of KeyBank NA

Explore More From Ramsey Network:

Ramsey Solutions Privacy Policy

Products:

[jacobg]

This ignores that paying less taxes now means being able to invest more today. Thats why the math works out to be the same if the tax rate is the same. It's also beneficial to have some pretax dollars in your retirement years so you can utilize your standard deduction and lower tax brackets (assuming congress doesn't raise the lowest brackets) in retirement. Imagine getting a tax deduction upfront and then still getting it distrubuted tax free because your high roth savings allowed you to stay in a zero tax bracket.

[raymondwzeng]

The Roth 401k option is nice, but there's definitely some min-maxing available for higher earners to go with a traditional instead at the higher brackets.

[haarukin]

You still pay taxes on your gains. So don't forget about that.

[arsenalever]

What is the total you can save in 401k Roth and Roth IRA (Roth and Traditional together cannot exceed $7000 for the year 2025), all together?
I am guessing less than the maximum you can contribute in a traditional 401k?
Even with the taxes one has to pay, it makes more sense to have both, a traditional 401k and Roth IRA in my opinion!

[Chances]

Nope, I’m in a higher tax bracket now so it makes sense to max out the pretax 401k. And saving on taxes allows me to save more into other accounts, like my Roth accounts or my kids’ 529 college accounts.

[GLI_]

So what are we supposed to do with Bitcoin now that Trump has basically made it a illegitimate currency. Is it safe to start investing in it or should we just stay with the tried and true stuff

[herbgerblund]

I upvotes purely for your apology. Great advice though.

[cadillac]

Why do you do if you make 150k/year and your employer does not offer a 401k? I max out an IRA but $7, 000/year is nothing.

[NotKid]

You save almost 4 to 5k of your taxes by maximizing 401k with traditional . If you invest that money until you retire, it's much higher than what you get with Roth 401k. Use your mind.