<p>That article is great. It made very clear something I didn’t fully understand when comparing Roth vs. non-Roth 401Ks: it’s not your incremental rate when you retire, but your effective rate, that controls whether a Roth makes sense, and therefore for the vast majority (outside of something really crazy happening with income taxes) the traditional 401K is better.</p>
<p>Although I wish it would have delved more quantitatively into the effect that withdrawals have on making SS benefits taxable, because apparently Roth distributions don’t get counted when calculating how much of the benefit is taxable.</p>
<p>The parens in the link in NJ17’s post broke the auto-url’ing, here’s a clickable link (I hope):
[url=<a href=“http://www.joetaxpayer.com/images/ThinkingAboutaRoth401(k).pdf]http://www.joetaxpayer.com/images/ThinkingAboutaRoth401(k).pdf[/url”>http://www.joetaxpayer.com/images/ThinkingAboutaRoth401(k).pdf]http://www.joetaxpayer.com/images/ThinkingAboutaRoth401(k).pdf[/url</a>]</p>