#401k
2 articles
A $10,000 401(k) Contribution at a 22% Marginal Rate Only Costs About $7,800 of Real Take-Home Pay
The IRS quietly co-pays part of every pre-tax contribution by letting it escape your marginal bracket. We ran the two-timescale math: this year's tax saving, and what that same dollar grows into by retirement.
The Roth vs Traditional Decision Comes Down to One Number: Will Your Tax Rate Be 5+ Points Different in Retirement?
Both accounts grow tax-advantaged. The winner depends entirely on comparing today's marginal rate against your expected retirement rate — and the honest comparison has to include what a Traditional saver does with the tax savings.