Roth vs. Traditional

The core question: pay taxes now or later?

Traditional (401(k) or IRA): contribute pre-tax dollars, then pay taxes when you withdraw in retirement. Good if you expect a lower tax bracket later.

Roth (401(k) or IRA): contribute after-tax dollars, then withdraw tax-free in retirement — including all the growth. Good if you expect a higher bracket later.

Young and early in your career? Roth often wins, since your income and tax rate are likely at their lowest. Pay the smaller tax now, then let decades of growth compound tax-free.