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Pre-tax vs post-tax contrbutions to 401(k)?

posted 9 years ago by loserkids55
3 replies | jump to latest

I know that you should max out your pre-tax contributions (to what your employer will match), but is it worth it to do post-tax as well?

[–] sportsfanultimate-43126 9 years ago

Depends on your financial situation. Ask a financial adviser.

There's always a chance "they" could take away the tax exemption behind your 401k -- hence why I'm not that big on 401ks as a fallback to a pension.

[–] jharmon64 9 years ago

Seek a financial advisor to help you understand the options.

This is really important and don't listen to anyone in a forum or try to figure it out yourself.

[–] mikekuhlman-415-393642 9 years ago

Post-tax is always better, because the money's already been taxed, and thus, minus whatever taxable interest the money may have earned in the 401k, it's all yours.