I used to assumed that it was better to max your tax deferred before going taxable. However, after reading this thread (http://www.early-retirement.org/forums/f28/what-proportion-do-you-save-after-tax-45647.html) I realized that is't always the case.
A lot probably has to do with personal circumstances and preferences. For me, the three big tax deferred advantages are:
1. allows me to invest ~37% more
2. lowers my AGI allowing for more tax deductions and IRA contributions
3. it's still tax advantageous even if I have to pay the 10% early withdrawal penalty
I'm curious to hear how other members on here feel.
A lot probably has to do with personal circumstances and preferences. For me, the three big tax deferred advantages are:
1. allows me to invest ~37% more
2. lowers my AGI allowing for more tax deductions and IRA contributions
3. it's still tax advantageous even if I have to pay the 10% early withdrawal penalty
I'm curious to hear how other members on here feel.