Pretax vs. Roth 401(k) contributions: This lesser-known calculation could help you decide

By CNBC   |   1 month ago
Pretax vs. Roth 401(k) contributions: This lesser-known calculation could help you decide

Choosing between traditional and Roth retirement contributions can be complex. While traditional offers tax breaks upfront, Roth contributions grow tax-free. Consider your current and future tax brackets, but also factor in your effective tax rates for a better decision.

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