My question involves personal finance in the State of: California
Iíve always heard that it is better to pay taxes now and let your 401k grow. Thus when you withdraw at retirement age, all the proceeds and growth will be tax free. That is why most people recommend participating in Roth 401k. However, for high earners, you will be paying high taxes now when contributing into the Roth 401k and when you retire, usually you will be at a lower tax bracket (since you have no income when you retire). So isnít it technically better to contribute to the 401k as Pre-tax so you get a larger amount of contributions that grow over time. And when you withdraw from your 401k at retirement, you will get taxed at the lower tax bracket. Thus pretax 401k is better than Roth 401k?