I got a question: Do some of you investment gurus prefer pre-tax or after tax deductions to your 401K? My company gives me the option and I am going to go after tax since I can afford it. My company just bumped up our 401K to 8% dollar for dollar so I am really trying to take advantage of it as much as possible.
Nothing I say constitutes financial, legal or tax advice. Consult your own financial advisor and/or accountant. If you don't need the deductions, does your company offer a Roth 401k? In my opinion the after-tax 401k option is the worst among available choices because of the taxes on gains. A Roth 401k could allow your gains to escape tax free. Or many people choose to maximize 401k pre-tax deduction in conjunction with a Roth IRA (If you qualify). If people don't qualify for the Roth IRA, the pre-tax 401k makes even more sense because they're probably in a higher tax bracket.
