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Benefitnews.com - A SourceMedia and Investcorp publication
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In contrast, those with low incomes and those who will be in a lower tax bracket during retirement are probably better off contributing to a pre-tax 401(k).
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"Employees who expect to be in a higher tax bracket after retirement would benefit the most from having a Roth 401(k).
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Don't Max Out Your 401(k): Redux [Fool.com: Commentary] March 3, 2005
- Their primary reason: Withdrawals from 401(k) accounts are taxed as ordinary income, instead of at the lower rates of long-term capital gains. Not only does this reduce the after-tax benefit of a 401(k), but it might push retirees into a higher tax bracke - gfender on 2006-04-03
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