The Case Against Roth 401(k)
To Roth or not to Roth, that is the question. Starting in 2008, like many other employers, my employer also started offering a Roth 401k option in our 401(k) plan.
This question of whether one is better off with contributing to the Traditional 401k or contributing to the Roth 401k has been the subject of a lot of debate. Although there is no one-size-fits-all answer, I think for most people the majority, if not 100%, of the contribution should go to a Traditional 401(k). I will state my case against the Roth 401(k) in this post.
The basic premise of a Roth 401(k), and to some extent a Roth IRA, is that of prepayment. You are prepaying the tax now so you don’t have to pay tax later. This prepayment concept is not uncommon. For example, buying a season ticket is prepaying for the individual events. Buying a timeshare is prepaying for vacation accommodation.
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The Bogleheads' Guide to Retirement Planning by Taylor Larimore, Mel Lindauer, Richard Ferri, and Laura F. Dogu-
