401(k) vs Roth 401(k): which is better?
Use traditional 401(k) if you expect to be in a lower tax bracket in retirement (most people). Use Roth 401(k) if you expect to be in the same or higher tax bracket — common for younger workers in early career. Many people split contributions for tax diversification.
More context
Use traditional 401(k) if you expect to be in a lower tax bracket in retirement (most people). Use Roth 401(k) if you expect to be in the same or higher tax bracket — common for younger workers in early career. Many people split contributions for tax diversification. The exact answer depends on your specific situation — the numbers above are a strong starting point, but the right next step is to plug in your actual figures.
For a deeper analysis, use one of the related tools below — they take your specific income, debt, location, and goals as inputs and produce a tailored answer.