Roth vs Traditional 401K

I am writing this post so that the future me can reference what the past me thought.

As of August 16th, I am all in with a Roth 401(k). Here's why:

  1. I like the idea that I own my retirement accounts. By paying the tax today, I am not beholden to future taxes.
  2. I am fortunate enough where I can max out my 401(k) contributions each year, so I feel like I am able to squish more funds in by paying the taxes now.
  3. Less paperwork. I do have some retirement funds that are "traditional." I know I will have to pay taxes at some point in the future, which probably means more paperwork. Reducing the level of paperwork does sound attractive.

Feels like I can't lose either way. I am not saying it's a wash, but I have read lots of literature on this topic: from Reddit posts, financial blogs, to even YouTube videos. The answer isn't definitive. What's important is that I am saving for retirement and maxing out my 401k. 

I find this choice to be a lifestyle decision, rather than a financial one.

Thanks for reading!

Comments

Post a Comment

Your input is most welcome!
Thank you for reading.

Popular posts from this blog

3 AI productivity tools I hope to see in the future

AI Video Curator The Sales Pitch : Turn your hefty repository of long and unedited meeting recordings into useful L&D artifacts curated to serve different business users. Basic Features Video Clipping - turns a recording into short reels Annotations - places helpful notes at different time stamps for easy navigation and enhanced learning Learning Paths -  Recommends a catalog of videos to users looking to obtain certain skills or play certain roles Use Cases Client Offboarding Employee Offboarding  Long Technical Working Sessions Risks Data Storage Costs Quality Control Checks User Adoption  AI Documentation Organizer The Sales Pitch : Feeling overwhelmed by the clutter of documentation that is outdated, duplicative, and unorganized? Ask an organizer to clean up behind the scenes. Basic Features Compiles a list of pages suggested for archival or deletion due to outdated content Compiles a list of pages suggested for mergers due to duplicative content Identifies "orph...
Read more

3 Small Splurges

I watched a Korean sketch comedy video about the small splurges of three characters who recently started full-time jobs. Their splurges were buying all the sweets, ice cream, and meals they wanted. In a way, they were celebrating their entrance into the post-grad life by doing things they would not have done as students. Disposable income is a wonderful thing. The video inspired me to think about my small splurges. Here are 3 I would like to share with you. Unlimited mobile data A couple days ago, I finally upgraded to an unlimited plan for an extra $10 per month. Prior to the upgrade, I always found myself running out of the 10 GB of data allocated each month with many days left to go in the billing cycle. With my desire to listen to Spotify on my phone while walking or watching YouTube on the train, my reliance on data was growing. I decided to upgrade. College me would have never opted-in for an upgrade. Instead, I would be searching for unsecured, public Wi-Fi networks to siphon o...
Read more

February 2025 - 3 Habits I am Incorporating in 2025

3 Habits I am Incorporating in 2025 Daily Journaling in My Notes App Last December, I bought an iPad and received an Apple Pencil from a friend. Having recently switched from a bulky Windows laptop to an iMac, I realized I needed a portable device. The iPad turned out to be perfect. Business trips were a hassle when I had to carry both my work and personal laptops, and the iPad made travel much easier. To get the most out of it, I started journaling. Writing every day feels both therapeutic and meditative. Will I ever go back and read my entries? Probably not. But there’s something valuable about putting thoughts on paper. I highly recommend it. You don’t need to write much—just a few paragraphs to clear the noise in your head. Professional Development Continuing education is always on my mind. Graduate school is an expensive investment I can’t afford right now, so I’m finding other ways to grow in my field. Product management has its specializations, and while I stand by that, I often...
Read more