3 Reasons to Choose a Traditional 401(k) Over a Roth 401(k)

Choosing between a traditional 401(k) and a Roth 401(k) can be difficult, since you may not be sure what your tax rate will be in retirement relative to when you're working. The traditional 401(k) allows you to defer taxes now, accumulate investment value, and pay federal tax later on any withdrawals in retirement. This can have a lot of value if you have your eyes set on a state like Texas or Florida (among others) that levies no state income tax.