My goal, like others on this site, is to retire early. I am 39 and would like to be able to retire as early as 45. My employer offers a 401k plan. I invest the maximum tax-deferred amount per year ($16,500) and receive a 4% company match. The 401k can be invested as a Roth 401k. I would like to know if it is better for me to invest money in the 401k as a tax-deferred (traditional) contribution or as a after-tax (roth) contribution. I do not own real estate, I take the standard deduction/exemption for tax purposes. The nice thing about the traditional 401k contribution for me is that it brings my current taxable income down. Currently, about 52% of my net worth is in taxable accounts, 32% is in employer-sponsored retirement plan accounts (401k, 403b) and 15% is in Roth-IRA accounts. I have read that as a general rule, just like it is a good idea to diversify your investment accounts, it is also a good idea, if possible, to diversify your investment accounts based on tax status (after tax, tax deferred, and Roth-type accounts). Thank you for your insight!