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People are making a tax decision in their 401(k) every single paycheck… and many don’t even realize it.
The choice between Roth and pre-tax contributions can impact taxes, retirement income, and long-term flexibility over time.
For some individuals, Roth contributions may make sense earlier in their career, while pre-tax contributions may become more valuable during higher earning years. In many cases, having a mix of both can create flexibility later on.
One thing many people don’t realize is that most 401(k) plans automatically default to pre-tax contributions. So unless you’ve reviewed your elections, there’s a good chance that’s what you’re currently using.
🎥 Watch the video for a brief explanation below.
