Re:Since Devs change jobs every few years now: 401k or Roth?
by jaredsohn on Thursday February 23, 2017 @09:19PM
(#13720291)
Another difference I just thought of (which may have been what I was originally thinking of but I said it wrong.)
I think an advantage of a Roth is that you don't have to pay tax on the money you earn via investing. For example, if your money in a Roth doubles then you only need to pay tax on the half of it that was there when you added money to the fund. Whereas for a traditional 401k you pay tax on money as it comes out which includes money earned via the investment.
I think an advantage of a Roth is that you don't have to pay tax on the money you earn via investing. For example, if your money in a Roth doubles then you only need to pay tax on the half of it that was there when you added money to the fund. Whereas for a traditional 401k you pay tax on money as it comes out which includes money earned via the investment.