Tax Playbook · Keep more of each paycheck
Roth or traditional 401(k)?
Traditional 401(k) money lowers your tax bill today, but you pay tax later. Roth 401(k) money is taxed today, and you usually pay no tax later. Pick Roth when you expect a higher tax rate later; pick traditional when your rate today is higher. A $10,000 traditional contribution at a 24% rate can cut this year's federal tax by $2,400.
Good for: Anyone choosing between Roth and traditional 401(k) contributions.
Learn the basics
Recent articles & guides
- Fidelity — Roth vs. traditional: who comes out ahead?
- WR Anderson — Roth 401(k) vs Traditional 401(k) (2026)
- StackAndFire — Roth vs Traditional 401(k) decision framework (2026)
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Educational summary, not tax advice. Limits and rules change — confirm current law with your tax adviser.