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[quote=Anonymous]It's practically ALWAYS going to be a better deal to do the ROTH, especially for higher earners who have access to a Roth 401k.

The Roth allows you to put more money away ($17k after taxes is more money than $17k before taxes).

And, even if your tax rate is the highest bracket now and you expect it to be lower in the future, you'll be paying that percentage on a higher number, later.  To just pick really easy numbers, 35% of $26k (about what you'd you'd be putting, pre-tax, in a Roth to meet the $17k max) is about $9k in taxes.  Let's say you earn a healthy 8% annually on that investment.  In 30 years, your $17k will be almost $190k.  But taxes have already been paid, you'll be making your withdrawals tax-free.

If the money were in a regular 401k, you'd be paying a lot more than $9k in taxes.  Even at a very low tax rate of 20%, you'll be paying almost $40k in taxes on your earnings!  Future dollars aren't worth as much, sure, but that's a pretty big difference.  And your rate will probably be higher than 20% when you start withdrawals. [/quote]

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