How to Decide Between Pre-tax and Roth(k) Contributions

Pre-tax vs. Roth 401(k): Deciding which to use for retirement is trickier than you think

KEY POINTS

The choice between pre-tax and Roth 401(k) contributions may be trickier than you expect, financial experts say.
While pre-tax 401(k) deposits offer an upfront tax break, the funds grow tax-deferred, meaning you’ll owe levies upon withdrawal.
By contrast, Roth 401(k) contributions happen after taxes, but your future earnings grow tax-free.
The best option depends on your current and future tax brackets, possible tax law changes, estate planning and other goals. Learn more

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