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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Fed here. What are the reasons to to Roth 401K vs Pretax?[/quote]

It is simply a gamble on whether or not you believe that the tax rate you pay in retirement will be greater than the tax rate that you pay today. I have been an extremely high income earner my entire life. I have all of my retirement funds in a Roth (about $1.5M at 45). I am betting that my income when I retire will still have my in the highest rate AND that the highest rate will be higher than it was during my lifetime.

I also get the advantage of not having to draw those funds (unlike a 401k which has required minimum distributions beginning at a certain age- 70.5 I think). If it don’t use the Roth funds at all (distinctly possible) they pass to my kids without taxation. [/quote]

NP here - I would also say that with a Roth contribution, you also will know that the amount you have saved for retirement is the amount you have saved for retirement. 1M in a Roth account it 1M. 1M in an pretax account is 1M - x (with x being whatever the current tax rates are in the future). Personally, my TSP contributions are 100% Roth TSP even though I know it costs me a lot more now because 1) I expect my household income in retirement will be high-ish just with two pensions and two social security checks, 2) I expect taxes to increase significantly in the future given that taxes are at historic lows now, the amount of federal debt, the cost of supporting boomers, the cost of natural disasters due to climate change, etc. 3) I want to minimize RMDs, 4) I want to know exactly how much money I have to pass on to my child who has a number of disabilities and will never be able to support themselves financially. [/quote]

Tax increases have been pretty rare recently but if you think they will increase substantially I wouldn’t assume Roths will be exempt— seems more likely we would see some attempts to tax large Roth balances (or withdrawals from Roths with large balances). [/quote]

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