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401k gets a tax benefit at any income level. Tira vs roth IRA depends on income level and many posters get no tax deduction for a Tira, so if there is no tax deduction then the same dollars into a Roth is much more valuable.
the part folks get wrong is they compare their final years income and tax rates to what they think it will be in retirement.
there was a whole lifetime of tax rates you passed through for decades that may actually average out way below your final years.
decades of ramping up and taking the deductions may actually leave you down the road in a higher tax rate than your life time average.
for most youngins who are starting out and do not have jobs that plop them in the highest brackets right away a roth has amazing power.
so much so that it would take a 9% difference in tax rates by age 55 to offset the typical rising glide path most folks have .
even if tax rates stayed the same the roth would leave most with 15-20% more spendable income because of this lifetime average tax rate factor.
throw in the fact rmds's have any money re-invested in a taxable account taxed forever while roths still grow tax free and the fact you may get your ss taxed and roths win hands down even with no rate change .
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