Pretax and Roth are different forms of investment, but you need to know somethings about both before you decide on what path you are going to take. Roths will offer an after tax that will be levy free. Pre tax deposits will offer right offs and tax deferred growth. So choose wisely. If you think you will have a higher income and be taxed more, a Roth 401k plan is most likely the best bet to go.
Key Takeaways:
- Pre tax savings allows you to do tax right offs, and tax deferred growth.
- After tax savings may happen if you have a Roth 401k. They may also grow levy free.
- Tax deferred money from a 401k may trigger certain levies on their social security and medicare.
“While pre-tax deposits offer a write-off and tax-deferred growth, after-tax Roth contributions may grow levy-free.”
Read more: https://www.cnbc.com/2022/01/10/pre-tax-vs-roth-401k-theres-more-to-consider-than-you-think.html
Leave a Reply