I would love some help on what makes the most sense. I work for the US Federal Government and have a Traditional Savings Plan as my 401K. I have consistently hit max contribution limits and have roughly 300k in my 10 years of employment with another 20 years to go.
I been contributing the bulk of my money to the traditional account and a coworker suggested that I should be maxing out the Roth and putting nothing into the traditional.
I don't really understand which one makes more sense other than the tax implications of being taxed now or later. The coworkers explanation was limited and I didn't really understand their logic. I expect this account to have 2-3 million by retirement, if that makes any difference.
original posted by shrugshard to r/personalfinance on Wed, 28 Feb 2024 15:44:13 GMT.