Most people are told to choose a Traditional 401(k) if they’re in a higher tax bracket—but what if that advice is costing you money in the long run? In this video, we break down the real math behind Roth vs Traditional 401(k), including tax brackets, long-term growth, and the biggest mistake people make when comparing the two. You’ll see why Roth 401(k) often comes out ahead, how future taxes impact your retirement income, and when it actually makes sense to use a Traditional 401(k) or even split between both.

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⏰ Table of Contents ⏰
0:00 The biggest myth about 401(k) investing
1:05 The Problem with the Traditional 401(k) Argument
4:00 Why Roth 401(k) Wins At Every Tax Rate
4:29 10% Tax Bracket
5:07 12% Tax Bracket
5:53 22% Tax Bracket
6:30 24% Tax Bracket
6:58 32% Tax Bracket
7:53 But What If My Tax Rate Is Lower In Retirement?
13:52 When Traditional 401(k) Still Might Make Sense
16:33 Pay taxes on the seed or the tree?

#FIREPsyChat #FinancialIndependence #Roth401k

Disclaimer: This video is not in any form of personalized financial advice. I am solely sharing my personal experience and opinions. All Strategies, tips, suggestions, and recommendations shared are solely for entertainment and educational purposes only. There are financial risks associated with investing. You must conduct your own research and due diligence or seek the advice of a licensed advisor if necessary.

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