Audio Version: Let Me Hear It!
Instant coffee, instant photos, instant underpants (yep, they’re a thing!). Instant gratification has become a cultural norm. But sometimes, waiting can provide greater satisfaction in the long run. For those of you (and/or your spouse) that are offered a Traditional and Roth 401(k) option through work, the decision on which plan to fund essentially comes down to whether you want the income tax benefit now or later. Specifically, does it make more sense to receive a tax deduction this year or tax-free income later? A quick summary of tax benefits and timing for each plan type follows.