Traditional vs. Roth
From 401(k)s to 403(b)s, many of us contribute to retirement plans through our work. But do you know the differences between the various types of plans? In this episode, I’ll discuss some of the key areas of retirement plans that are important to be familiar with, as well as how taxes come into play as you contribute and when you’re ready to start taking money out.
Weighing the differences between Roth and traditional 401(k)s can be a great way to decide how to better—and more strategically—allocate your funds for retirement. And the good news is: you don’t have to choose just one. There are many reasons to have both kinds of plans, so listen in as I share examples of how each plan would work and what you can do with both options in different circumstances.
Listen To The Episode Here:
What You’ll Learn:
- The different kinds of plans that people have through their work.
- How a retirement plan works and where taxes come into it.
- What to know about traditional savings plans.
- How a Roth savings plan works.
- Examples of how plans play out in real life.
- Benefits and drawbacks of both plans.
Ideas Worth Sharing:
- “You’ve deferred taxes all those years, so at some point, you have to pay the piper.” - Regina McCann Hess
- “With a Roth, that money that you contributed, plus all that growth, comes out tax-free.” - Regina McCann Hess
- “It’s powerful when you say the tax bill is essentially double.” - Regina McCann Hess
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