Retirement Savings – Ramp Up to Retirement

Roth vs. Pre-Tax 401(k): Choosing When to Pay Taxes for Retirement (Ep. 37)

By Ramp Up to Retirement | September 9, 2026

Choosing between Roth and pre-tax retirement savings can feel simple until taxes, healthcare costs, income changes, and future withdrawals enter the picture.

In this episode, Dan Reese, CFP®, explains how Roth and pre-tax 401(k) contributions affect when you pay taxes and why the more appropriate choice may change throughout your career. He covers why lower-income years may favor Roth contributions, when pre-tax savings may become useful, and how Roth assets can provide added flexibility in retirement.

Dan also explores employer matches, Roth IRAs, contribution limits, healthcare subsidies, Medicare premiums, inherited accounts, and the value of reviewing your savings strategy as your income and circumstances change.

Key points:

How Roth and pre-tax 401(k) contributions determine when taxes are paid on your retirement savings
Why lower tax rates early in a career can make Roth contributions worth considering for younger savers
How promotions, career changes, business income and changing household income can affect your savings choice
How Roth savings may provide flexibility when managing taxable income, healthcare-related costs and tax brackets during retirement
How Roth IRAs and Roth 401(k)s differ, and what to know about employer matching contributions
And more!