Roth 401(k) vs. Traditional 401(k): Which Saves You More? πŸ’° | Master Money Video

Roth 401(k) vs. Traditional 401(k): Which Saves You More? πŸ’°
Here’s the difference (and how to choose) πŸ‘‡

🟨 Traditional 401(k):
– Contributions are tax-deductible now
– You pay taxes later in retirement

πŸŸͺ Roth 401(k):
– Pay taxes now
– Withdraw tax-free in retirement

So… which one saves more?
πŸ’‘ If you expect to be in a higher tax bracket later β†’ Roth wins
πŸ’‘ If you’re in a high bracket now and expect it to drop β†’ Traditional might make sense

Long-term, Roth can save you thousands in retirement β€” and give you more flexibility.

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