Is It Better To Do A Pre-tax or Roth 401K?

Your 401(k) at work is one of the best ways—if not THE SINGLE best way—to save for retirement! The 401(k) makes it easy, quick, relatively painless, and forces you to “dollar cost average” into your investments over time. Your 401(k) may also provide employer matching contributions and lower costs than you’d be able to get on your own due to economies of scale!

But, for all of their glory, the 401(k) can be difficult to navigate. There are rules and potential penalties. There are limits and restrictions on investments. Most importantly, most 401(k) plans today have the Roth or pre-tax option, making things even MORE confusing!

This short video explains the differences between the Roth 401(k) and the pre-tax 401(k) and will guide you towards which one is best for you and your retirement planning needs.

Видео Is It Better To Do A Pre-tax or Roth 401K? канала RetireWire