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In response to
"Account balance isn't the only determining factor. You are hedging your bets on the tax situation in the future. Granted, you're probably right"
by
oblique
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Unless you're putting money away for the shorter term, it really is a much better option to put it in pre-tax.
Posted by
pmb (aka pmb)
Aug 30 '10, 09:34
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Yes, there are questions about future tax policy, but you'll be putting in less money and then (depending on the investment) getting taxed every year on the earnings (or if you take it out later, taxed when you take it out on the earnings (at least on a capital gains basis). The 401(k) will also not annually tax your earnings on the account. It will grow much faster. It's not really that close of a call.
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